AFC Puts Africa’s Mineral Wealth at Nearly $30tn, $8.6tn Untapped

According to a new study from the Africa Finance Corporation (AFC), Africa has vast mineral wealth estimated at US$29.5 trillion. However, nearly US$8.6 trillion of that remains untapped.

The report was presented at the Mining Indaba conference in Cape Town and titled The Compendium of Africa’s Strategic Minerals. It highlights both opportunities and challenges for the continent’s resource-rich economies.

The AFC study reveals that Africa holds about 20 percent of the world’s total mine-site mineral value. This figure shows the continent’s significance in global raw material markets.

However, it also highlights a paradox. While Africa’s resources are immense, the continent only captures a small part of the economic value.

Out of the estimated US$29.5 trillion in mine-site value, US$8.6 trillion is undeveloped. This is largely due to fragmented geological data, limited exploration, poor transparency, among others.

These obstacles have limited capital inflows and slowed new mining projects, even as global demand rises for strategic minerals like cobalt, manganese, lithium, and graphite.

In his keynote address at Mining Indaba, Samaila Zubairu, President & CEO of AFC, stated that the compendium aims to “reframe the sector through an African lens.” This is achieved by connecting mineral reserves to infrastructure, industrial capacity, and regional needs.

He stressed that improving the quality and accessibility of geological data is crucial to reduce project risks and attract investment for exploration.

Zubairu pointed out that mine-site values significantly underestimate the continent’s true economic potential. This is because they overlook the greater value created when raw minerals are turned into finished products.

When measured based on industrial use instead of extraction sites, Africa’s mineral wealth could increase dramatically. The change would greatly boost local economic impact.

Experts across the continent argue that realizing this potential will require much better coordination of supply, processing capacity, and infrastructure. This includes power, transportation, and regional industrial corridors.

Despite Nigeria’s wealth of mineral resources, the mining industry only accounts for less than 1% of the nation’s GDP. In order to shift the industry away from exporting raw minerals and toward value-added production, the AFC findings highlight the urgent need for structural reforms, better geological mapping, and focused investment.

As global competition for critical minerals heats up, Africa’s strategic position could be a game-changer. This is possible if governments and investors collaborate to turn geological wealth into sustainable economic growth.