In September 2024, the Industrial Development Corporation of South Africa (IDC), in collaboration with the Development Bank of Southern Africa (DBSA) and Tanzania’s CRDB Bank, announced a $179 million financing package for Tanzania’s Mahenge Graphite Project. This investment aims to help African nations capitalize on the rising demand for energy transition metals, which are vital for economic growth. The project, operated by Black Rock Mining, is one of the world’s largest flake graphite initiatives, with an expected output of 347,000 tons per annum, further strengthening Tanzania’s position in the global market.
This funding comes amid a growing trend of regional financial instruments designed to bolster support for the critical mineral value chain, allowing African countries and projects to lessen their dependency on foreign funding while gaining greater control over mining operations. The upcoming Critical Minerals Africa (CMA) 2024 summit, set for November 6-7, will delve into investment opportunities and innovative local financing mechanisms to maximize the continent’s 30% share of global critical mineral reserves, ultimately driving economic growth and high returns.
Taking place alongside the African Energy Week: Invest in African Energy 2024 conference from November 4-8, the CMA 2024 summit aims to position Africa as the premier destination for investment in critical minerals. Delegates will have the chance to engage with leaders in energy, mining, and finance in Cape Town. For more information, interested sponsors, exhibitors, and delegates can reach out via sales@energycapitalpower.com.
In addition to the Mahenge project, the IDC is also supporting Giyani Metals’ K.Hill manganese project in Botswana with a $16 million loan, enhancing Botswana’s role in the critical minerals sector. Furthermore, South Africa’s Department of Mineral Resources and Energy launched a $21.8 million Junior Mining Exploration Fund in June 2024, aimed at supporting emerging firms involved in copper, lithium, rare earths, graphite, and platinum group metals. In Angola, the sovereign wealth fund, Fundo Soberano de Angola, has invested an additional $10 million in Pensana’s Longonjo rare earth project, raising its stake in the company to 24.42%. Pensana previously received $9 million from the fund in 2020 for the same project.
African private financial institutions, including the African Export-Import Bank (Afreximbank), DBSA, and the Africa Finance Corporation (AFC), are also actively involved in supporting critical mineral initiatives. In September 2024, the AFC secured financing for the Lobito Rail Project in Zambia and Angola, facilitating the construction of an 800-km railway to transport copper to international markets. The AFC is also backing Kamoa Copper’s phase three expansion in the Democratic Republic of the Congo (DRC) with a $150 million loan, which will boost production to over 600,000 tons annually, reinforcing the DRC’s position as a leading global critical mineral producer.
Additionally, the AFC announced investments in mining projects with Gécamines in the DRC, Thor Explorations in Nigeria, and Nyanza Light Metals in South Africa in February 2024. Meanwhile, the DBSA is contributing a $200 million loan to the Lobito Corridor project in Angola, and Afreximbank is providing technical and financial assistance to the DRC and Zambia for the development of special economic zones aimed at battery electric vehicle production. At the CMA 2024 summit, high-level panel discussions will focus on best practices for enhancing African investments in critical mineral projects to promote sustainable development.