Global investors are partnering with mineral-rich African nations to modernize logistics infrastructure. The Critical Minerals Africa Summit will showcase lucrative transportation sector opportunities, as Africa taps its vast critical mineral resources – 30% of the global total – for economic growth.

With the demand for critical metals for clean energy applications set to double by 2030, global investors are increasingly targeting Africa’s logistics networks to secure supply of the metals. For example, China signed an agreement with Tanzania and Zambia to provide funding and construction services for the revamp of the Tanzania-Zambia trans-national railway project, in September 2024.

As China solidifies its role as the global manufacturing hub for clean energy solutions and East Africa ramps up the exploitation of critical minerals, the project will be essential for enhancing trading of copper, cobalt and rare earth elements between Tanzania, Zambia and Chinese buyers, bolstering Africa’s contribution to a resilient supply of the minerals on the global market.

In August 2024, the U.S. government unveiled plans to extend the Lobito Corridor – a trans-regional transportation network spanning through Zambia, Angola and the Democratic Republic of Congo (DRC) - to Tanzania’s Indian Ocean coast. The expansion enables the U.S. to secure its supply of rare earth elements from Tanzania, alongside copper, cobalt and lithium resources from Zambia and the DRC for battery energy storage and electric vehicle applications. Italy also announced a $320 million investment in June 2024 for the Lobito Corridor, adding to financing commitments from the U.S. and the European Commission.

Similarly, global private sector investors are increasing their investments in African logistics projects for high returns amidst the growing demand for African minerals. Financial institution the Development Bank of Southern Africa approved a $200 million loan for the Lobito Corridor Railway project in September 2024, aiming to capitalize on the project’s role in facilitating trading of minerals between East African countries and international markets. The New Development Bank – a financing vehicle established by BRICS members –­ also approved a $278.8 million loan to support South Africa’s state-owned logistics firm, Transnet. The loan complements a $1 billion facility provided by the African Development Bank to modernize freight rail systems for efficient transportation of South Africa’s platinum group metals, copper and nickel to meet the growing demand of the critical minerals on the global market. Meanwhile, in August 2024, SimFer – a joint venture of Rio Tinto, Wabtec and Chalco – also invested $277 million to acquire locomotives for the Transguinean project to ensure the trading of iron and copper produced from the Simandou project in the Republic of Guinea.

Building on these developments, CMA will host global investors and African stakeholders to foster partnerships focused on advancing Africa's logistics infrastructure for critical minerals.

The Critical Minerals Africa 2024 summit on November 6 - 7 serves to position Africa as the primary investment destination for critical minerals. The event is held alongside the African Energy Week: Invest in African Energy 2024 conference on November 4 - 8, offering delegates access to the full scope of energy, mining and finance leaders in Cape Town. Sponsors, exhibitors and delegates can learn more by contacting [email protected]