Despite holding 30% of global reserves, Southern Africa attracts less than 10% of exploration spending — leaving huge investment opportunities untapped.

 

The World Economic Forum (WEF) has called for urgent action to unlock investment in Southern Africa’s vast critical mineral reserves, warning that current financing flows fall far short of what is needed to meet surging global demand for clean energy and low-carbon technologies.

 

A new report released under WEF’s Securing Minerals for the Energy Transition (SMET) initiative, developed with the Development Bank of Southern Africa (DBSA) and McKinsey & Company, examines opportunities and challenges across 10 countries: Angola, Botswana, Democratic Republic of the Congo (DRC), Madagascar, Mozambique, Namibia, South Africa, Tanzania, Zambia and Zimbabwe.

 

The study highlights that Sub-Saharan Africa holds nearly 30% of known global reserves of critical minerals such as copper, cobalt, lithium, graphite, manganese, chromium, vanadium and platinum-group metals. Yet, the continent attracts less than 10% of global exploration spending – a sharp disconnect between resource potential and actual investment.

 

“Southern Africa has the mineral reserves the global energy transition urgently needs, but finance flows are not keeping pace,” said Jörgen Sandström, Head of Transforming Industrial Ecosystems at the WEF. “Our new research not only reveals the scale of the gap but also practical, proven ways to close it.”

 

Boitumelo Mosako, CEO of DBSA, cautioned that without new approaches, Africa risks repeating the mistakes of the past. “If extraction continues in the same manner as historical practice the continent will once again miss the opportunity to convert its mineral wealth into structural socio-economic transformation for all,” she said.

 

Financing Barriers and Solutions

 

The report identifies eight key financing barriers: policy uncertainty, investment risks, energy access, transport bottlenecks, slow innovation, lagging industrialization, skills shortages and demand volatility.

 

To overcome these challenges, it presents replicable solutions backed by concrete case studies, including:

 

The Lobito Corridor: A major rail-focused initiative linking DRC and Zambia’s mineral-rich regions to Angola’s Port of Lobito. Supported by the EU, US, Angola, DBSA and others, the project includes upgrades and an 800-km extension to boost mineral exports and regional trade.

 

Namibia’s Green Iron Initiative: Africa’s first industrial-scale green iron plant, powered by renewables and green hydrogen, launched in April 2025. The facility aims to scale production from 15,000 tonnes to 2 million tonnes annually by 2030.

 

Zambia’s Mining Policy Reform: With copper output at 700,000 tonnes annually, Zambia has introduced reforms to attract investors and increase local participation. Production is projected to hit 1 million tonnes by 2026, with a national goal of 3 million tonnes by 2031.

 

The report stresses that scaling up investment in Southern Africa’s minerals sector is not only vital for the global clean energy transition but also a critical driver of inclusive growth and long-term prosperity for the region.  -TradeArabia News Service