Beyond Raw Deals: Future-Proofing African Mining Through Regional Action

Africa’s vast reserves of transition minerals position the continent as a key supplier for the future. However, the historical pattern of extracting and exporting these minerals with minimal processing has prevented many African nations from maximizing the economic benefits, leaving them with little more than environmental scars and unrealized potential. To address this imbalance, African governments must move beyond isolated strategies and embrace a well-planned regional integration approach while tackling persistent financing challenges that have constrained adequate investment in value chain development. 

The need for regional collaboration 

Prioritizing regional collaboration can help African nations achieve economies of scale, develop shared infrastructure, attract sustainable investment and drive local value addition. Several regional initiatives aim to streamline efforts in bolstering Africa’s mineral value chains. The African Minerals Development Centre, established in 2013 by the African Union Heads of State and Government, was designed to advance the African Mining Vision. More recently, the formation of the Africa Minerals Strategy Group in 2024 signals a renewed commitment to facilitating intergovernmental collaboration, tapping into the continent’s collective mineral wealth for mutual benefits. Despite these efforts, political instability, limited institutional capacity, and competition for foreign direct investment (FDI) continue to stall progress, prompting many countries to prioritize their individual interests.  

The fragmented approach has yielded little in terms of transition financing, value addition and overall sustainable development. It underscores the need for governments, mining companies, investors and communities to address the challenges hindering effective regional cooperation and drive a collective vision that enhances each country's investment profile and paves the way for a prosperous future in the African mining sector.

A call to action from African Mining Indaba 2025 

At the recent African Mining Indaba 2025, stakeholders reinforced this message, emphasizing the need for a well-defined regional strategy. They stressed that African governments and industry players must adopt a robust strategic roadmap for processing minerals within Africa rather than exporting raw materials. This is essential to ensure that the continent’s mining sector remains resilient and future-ready. The strategy must integrate sustainable practices, technological advancements, regulatory reforms and meaningful community engagement, with actionable and measurable goals set for the short, medium and long term. Additionally, governments must define a cohesive Africa Green Mineral Strategy that outlines critical steps toward mineral-based industrialization. 

However, the success of such a strategy hinges on securing adequate financing to support in-country and cross-border value addition. The absence of strong financing mechanisms remains a significant barrier to realizing economic benefits from Africa’s transition minerals. African mining projects often struggle to secure adequate funding due to high-risk perceptions. Many investors view Africa as an uncertain environment due to political instability and regulatory inconsistencies. Relatively high taxation rates and inadequate legal frameworks in some countries deter long-term investments. 

Steps to strengthen Africa’s mining sector 

Recognizing the financing challenges facing African countries, NRGI, in collaboration with the Minerals Commission of Ghana and the Africa Center for Energy Policy (ACEP), convened a high-level dialogue on the sidelines of the 2025 Africa Mining Indaba in Cape Town to explore innovative financing mechanisms and strategic partnerships for strengthening the continent’s mineral value chains. 

Below are the key actionable steps from the dialogue for African governments and stakeholders. 

1. Commit to regional collaboration for stronger mineral value chains   

Regional cooperation can optimize infrastructure, foster specialization and boost global competitiveness. Countries like the Democratic Republic of the Congo (DRC) and Zambia are taking steps to shift from being “landlocked” to “land-linked” through collaboration to strengthen their mineral value chains. African governments must actively support and implement regional initiatives that reinforce cross-border mineral integration. 

2. Develop and implement a long-term value addition strategy   

While several African countries have adopted policies to advance mineral value chains, governments must back these efforts up with a well-defined, long-term strategy. Clear goals, feasibility assessments and pathways to value addition can attract investment, enhance industrial policies and ensure policy consistency. Drawing lessons from successful regional and global models can inform these strategies.  

3. Leverage domestic and regional financing mechanisms  

African governments and regional bodies must ensure strong governance frameworks to maximize long-term benefits from innovative financing mechanisms, such as sovereign wealth funds and local stock exchange listings. Institutions like the African Development Bank and Africa Finance Corporation are playing a role, and the proposed African Credit Rating Agency could further unlock capital markets for infrastructure and energy investments. 

4. Engage external investors for sustainable partnerships 

Foreign direct investment remains critical, but investors must shift from short-term gains to long-term sustainability. Initiatives such as the investor-led Global Investor Commission on Mining 2030 aim to align investments with development goals. African governments and development partners should proactively engage investors to create mutually beneficial partnerships. 

5. Implement strong environmental, social and governance principles while considering contextualization  

Strong environmental, social and governance (ESG) protections not only ensure communities benefit from their mineral resources, but also secure investment. While voluntary standards help, governments must implement robust regulatory frameworks tailored to Africa’s realities. ESG compliance should be clear and achievable.