The funding comes at a time when an increasing number of regional financial instruments are strengthening support across the critical mineral value chain to ensure African nations and projects reduce reliance on foreign funding while retaining greater control over mining projects. As such, the upcoming Critical Minerals Africa (CMA) 2024 summit will explore investment opportunities and local innovative financing mechanisms maximizing the exploitation of the continent’s 30% share of global reserves of critical minerals for economic growth and high returns.

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]

In addition to supporting the Mahenge project, the IDC is backing battery metal development company Giyani Metals’ K.Hill manganese project in Botswana with a $16 million loan, positioning the country as a major player in the critical minerals sector. South Africa’s Department of Mineral Resources and Energy also launched a $21.8-million Junior Mining Exploration Fund in June 2024 to support emerging firms in copper, lithium, rare earths, graphite and platinum group metals. In Angola, the Fundo Soberano de Angola (sovereign wealth fund) invested an additional $10 million in mining exploration company Pensana’s Longonjo rare earth project this year, increasing its stake in the company to 24.42%. Pensana previously received $9 million from the fund in 2020 to develop the project.

African private financial institutions such as the African Export-Import Bank (Afreximbank), DBSA and the Africa Finance Corporation (AFC) are also actively supporting critical mineral initiatives. In September 2024, the AFC agreed to provide financing to Zambia and Angola for the Lobito Rail Project. The loan will support the construction of an 800-km railway in Zambia to facilitate the transportation of copper to international markets via Angola. The AFC is also financing Kamoa Copper's phase three expansion in the Democratic Republic of the Congo (DRC) with a $150 million loan. The project will increase production to over 600,000 tons annually, solidifying the DRC’s status as a top global critical mineral producer.

The AFC also announced investments in projects with mining companies Gécamines in the DRC, Thor Explorations in Nigeria and Nyanza Light Metals in South Africa in February 2024. Meanwhile, the DBSA is also supporting the Lobito Corridor project in Angola with a $200 million loan, while Afreximbank is providing technical and financial assistance to the DRC and Zambia for the development of special economic zones focused on battery electric vehicle production. At CMA 2024, high-level panel discussions will explore best practices to increase African investments in critical mineral projects for sustainable development.