A new study released by the Africa Finance Corporation has indicated that the continent holds an estimated $29.5tn in mine-site mineral value, representing about 20 per cent of global mineral wealth, yet captures only a fraction of the economic value embedded in this endowment.
In a statement on Monday, the AFC, which supports infrastructural and industry investments on the continent, said that the report reframes the mineral sector through an African development lens, placing industrialisation, infrastructure, and long-term regional demand at the centre of mineral strategy.
According to the study, improving the availability and quality of geological data is a necessary first step to de-risk projects and unlock exploration capital. The AFC argued that mine site valuations significantly understate Africa’s true mineral potential because they exclude the value created when raw materials are processed into steel, aluminium, fertilisers, batteries and alloys. When measured at the point of industrial use, the report states, Africa’s mineral endowment expands by an order of magnitude, revealing substantial latent value.