New continent research calls for stronger infrastructure, regional value chains and data transparency to unlock Africa’s vast untapped mineral potential.
Africa has an estimated $29.5 trillion in mine site mineral value, accounting for about 20 percent of the world’s mineral resources, but Africa still accounts for only a small portion of the economic value embedded in these resources, according to a new report released by the African Finance Corporation (AFC).
The study repositions Africa’s minerals sector through a development-focused lens, placing industrialization, infrastructure and long-term regional demand at the heart of the continent’s minerals strategy, the company said in a statement on Monday.
The report, entitled ‘A Compendium of Strategic Minerals in Africa’, was launched at the Mining Indaba Conference in Cape Town. The report estimates that approximately $8.6 trillion of Africa’s mineral resources remain untapped. This is largely due to fragmented geological data, uneven coverage, and limited transparency, which continue to drive risk perception and limit investment across the sector.
According to this study, improving the quality and availability of geological data is a critical first step to reducing project risk and leveraging exploration capital. The AFC also noted that mine site valuations significantly underestimate Africa’s true mineral potential, as they do not take into account the added value created when raw materials are processed into finished industrial products such as steel, aluminium, fertilizers, batteries and specialty alloys. The report states that when assessed at the level of industrial use, Africa’s mineral resources have expanded dramatically, revealing vast untapped value across the continent.
Speaking at the launch, AFC Chairman and CEO Samaira Zubair said the compendium aims to reshape how Africa approaches its mineral resources and translates natural wealth into practical development outcomes.
He explained that the report maps the complete mineral value chain, linking reserves and production with processing capacity, power supply, transport infrastructure and regional industrial corridors. He said greater transparency in geological data can help lower capital costs, reduce exploration risks and guide more strategic investment in both mines and infrastructure needed to support mining and integrated regional value chains.
The study found that there is little geographical or strategic alignment between mineral production, infrastructure and demand across Africa, and that more coordinated regional planning, built around the continent’s long-term development needs, is needed. Using the steel value chain as an example, the report said Africa has globally significant reserves of ferroalloys such as manganese, chromium and nickel, and iron ore production is entering a new phase of growth. However, these supply chains remain closely tied to fluctuations in Asian steel demand rather than to Africa’s own industrial expansion.
The report warns that this dependence has serious economic consequences. It notes that the recent slowdown in Asian steel demand, linked to a downturn in China’s real estate market and weak construction activity, has sent shockwaves through Africa’s minerals market. Cobalt production quotas have been introduced in the Democratic Republic of Congo to manage oversupply and falling prices. In South Africa, primary steelmaking capacity has been shut down due to weak domestic demand, high production costs and fragmented supply, and in Gabon, major manganese operations have periodically halted production due to declining demand for alloys from Asia.
The report notes that these disruptions come even as Africa continues to expand its transportation systems, power infrastructure, housing, and industrial capacity, all of which rely heavily on the same minerals. The group argued that the challenge was not a lack of demand but a lack of demand coordination, meaning that mineral production, processing capacity and infrastructure investment were not aligned around Africa’s long-term material needs.
The AFC report puts infrastructure at the heart of Africa’s mineral development strategy, describing it as a critical system linking raw materials, processing and market demand. The report highlights that the reliability and cost of electricity, transport connections and access to industrial land will ultimately determine whether value-added mineral processing is successful.
To support this, the study mapped mineral deposits and production assets alongside rail networks, ports, power generation hubs and transmission infrastructure to identify areas where viable mineral value chains could be developed. The report recommends targeted investments in shared rail corridors and cross-border power transmission, particularly in mineral-rich regions where tailored infrastructure can increase scale, reduce costs and strengthen regional industrial ecosystems.
Infrastructure is also seen as essential to Africa’s competitiveness in the era of green industrialization. The report notes that access to clean energy, efficient logistics and integrated development corridors like Lobito can reduce carbon intensity and improve access to global markets, where low-carbon and traceable supply chains are increasingly in demand.
The study focuses on new developments across the continent, including Angola’s progress in developing the world’s largest and highest-grade rare earth magnet metal deposits, Mozambique’s growing role as a major supplier of graphite and anode materials, the advancement of battery manganese sulfate projects in southern Africa, and the restart of uranium production in 2024-2025 in Namibia and Malawi.
The report concludes that unlocking Africa’s vast mineral wealth requires stronger data systems, coordinated infrastructure investment, regional industrial integration, and policies that move Africa beyond raw material exports to value-added production and long-term economic transformation.
