Africa is sitting on one of the richest mineral endowments on the planet — and much of it remains untouched.
A new study by Africa Finance Corporation (AFC) estimates that the continent holds about $29.5 trillion in mine-site mineral value, roughly one-fifth of global mineral wealth. Yet a staggering $8.6 trillion worth of these resources remains undeveloped, trapped by gaps in data, infrastructure bottlenecks and persistent investor caution.
The report, Compendium of Africa’s Strategic Minerals 2026, argues that the headline numbers still undersell Africa’s true potential. Mine-site valuations capture only what is pulled from the ground, not the far greater value created when minerals are transformed into steel, aluminium, fertilisers, batteries or advanced alloys. When measured at the point of industrial use, Africa’s mineral wealth multiplies dramatically — revealing layers of value that have barely been explored.
Unveiled on the sidelines of the Mining Indaba in Cape Town, the Compendium paints a picture of abundance paired with misalignment. Geological data remains fragmented, coverage uneven and transparency limited, all of which inflate perceived risk and keep capital on the sidelines.
Supply chains out of sync
One of the report’s sharper observations is how poorly Africa’s mineral production aligns with its own development needs. The continent is rich in manganese, chromium, nickel and iron ore, yet output is still tightly linked to Asian steel cycles rather than domestic demand.
That dependence has come at a cost. Sluggish demand from Asia — amplified by China’s property slowdown — has rippled across African markets, prompting cobalt output restrictions in the Democratic Republic of the Congo, steel plant closures in South Africa and intermittent halts in manganese production in Gabon. All this, even as African economies continue to expand transport systems, power grids, housing and industry that rely on these very materials.
Infrastructure, not an afterthought
The AFC study reframes infrastructure as the backbone of any credible mineral strategy. Power prices and reliability, transport links and access to industrial land ultimately decide whether local processing makes commercial sense.
By mapping mineral deposits alongside railways, ports, power hubs and transmission networks, the Compendium highlights where regional value chains could realistically take root. It calls for focused investment in shared rail corridors and cross-border power transmission, especially in mineral-rich zones.
Such integration, the report notes, is also essential if Africa wants to compete in an era of green industrialisation — where lower-carbon production and traceable, sustainable supply chains increasingly determine market access.
A shifting global moment
The study places Africa’s mineral future against a backdrop of rising trade tensions, export controls and aggressive industrial policy worldwide. These shifts elevate Africa’s strategic relevance, but AFC warns that opportunity alone is not enough. Value will flow only where the continent can offer reliable, value-adding alternatives to existing supply chains.
Instead of remaining a bulk exporter of raw materials, the report urges selective moves into high-impact segments — particularly for minerals with tightly concentrated processing markets. These include manganese, rare earths, graphite, uranium and specialised alloy inputs used in defence, aerospace and clean-energy technologies.
There are already signs of momentum:
Angola is advancing one of the world’s largest high-grade rare earth magnet metal projects
Mozambique has emerged as a critical supplier of graphite and anode materials
Battery-grade manganese sulphate projects are gaining ground in Southern Africa
Uranium output has restarted in Namibia and Malawi over 2024–25
Together, these developments hint at what could follow if infrastructure, policy and capital finally line up. Africa’s mineral story, the report suggests, is no longer about scarcity — it’s about execution.
