Africa holds an estimated $29.5 trillion in mine-site mineral value, representing around 20 percent of global mineral wealth, yet it captures only a small share of the associated economic benefits, according to a new study by the Africa Finance Corporation. The report reveals that approximately $8.6 trillion of this value remains undeveloped due to fragmented geological data, uneven exploration efforts, and limited transparency, all of which increase investment risk and restrict capital flows into the sector.
The study underscores that significantly greater value can be unlocked through industrial processing rather than exporting raw materials. Transforming minerals into higher-value products such as steel, aluminium, batteries and fertilisers could dramatically expand Africa’s economic gains. However, much of this potential remains underutilised, highlighting the need for a stronger focus on value addition and domestic industrialisation.
Launched at Mining Indaba in Cape Town, the Compendium of Africa’s Strategic Minerals presents a development-focused framework that calls for better alignment between mineral production, processing capacity, infrastructure investment and long-term domestic demand. It argues that disconnects between African supply and local or regional demand have left the continent vulnerable to external market shocks, such as declining Asian demand affecting cobalt, manganese and steel production.
Infrastructure development is identified as a central enabler of mineral-led industrial growth. Strategic investments in energy, transport networks and industrial zones can connect raw materials to processing facilities and end markets, lower operational costs and promote low-carbon, traceable supply chains. Such coordinated infrastructure planning would strengthen beneficiation efforts and increase the competitiveness of African mineral industries.
The report also situates Africa’s mineral wealth within a shifting global economy marked by fragmentation and supply chain realignment. It recommends selective integration into global value chains, particularly for minerals with concentrated processing markets such as manganese, rare earth elements, graphite, uranium and critical alloying inputs. By positioning itself as a reliable and value-added producer, Africa can enhance global supply resilience while driving sustainable economic growth at home.
