Afreximbank Calls for Bold Action to Transform Africa’s Mining Industry at 2025 African Mining Indaba

The AfCFTA Adjustment Fund, with a capital target of $10 billion, provides financial support to businesses adapting to the new trade regime, particularly those in mining.

Addressing policymakers, mining leaders, and global investors at the 2025 African Mining Indaba, Afreximbank made a strong call for African nations to own their resources, boost local industries, and create jobs that would sustain prosperity across generations. The annual event, which runs from 3–6 February, serves as a central forum to shape the continent’s mining future.

Denys Denya, Senior Executive Vice President of Afreximbank, delivered a compelling keynote at the ministerial symposium. In his address, he urged the continent to shift from a model of mere raw material extraction to one centered on value addition, local processing, and industrial transformation.

He noted that while the global mining sector generated $1.7 trillion in revenue in 2023, Africa retained only 4–20% of the value of its vast mineral wealth due to limited downstream development. “The choice is ours,” Denya stated. “Africa can continue exporting unprocessed resources and remain marginal in the global economy, or we can take decisive steps to invest in refining, smelting, and manufacturing.”

Key Recommendations and Initiatives

Denya outlined several critical steps that Africa’s leaders, private sector investors, and global partners must take to realize the continent’s untapped potential:

1. Mandating Local Value Addition: Policymakers need to establish clear, enforceable regulations that encourage local processing of minerals such as bauxite, lithium, cobalt, and iron ore.
2. Attracting Capital and Technology: Private sector investment in advanced refining and manufacturing facilities will be essential.
3. Promoting Regional Collaboration: African countries must leverage frameworks like the African Continental Free Trade Area (AfCFTA) to build integrated mineral value chains and facilitate cross-border partnerships.
4. Ensuring Sustainable Practices: Mining activities should prioritize environmental, social, and governance (ESG) standards, ensuring community benefits and long-term economic stability.

Afreximbank’s Support for Mining and Industrial Growth

Afreximbank is already backing Africa’s efforts to transform its mining sector. Over the past three years, the bank has approved more than $1 billion for mining-related projects, including:

• A bauxite processing plant in Guinea.
• Expansion of a manganese processing facility in Gabon.
• Financing for a diamond company in Botswana.
• Development of a petrochemical fertilizer plant in Angola.
• A titanium dioxide pigment plant in South Africa.
• A feasibility study for a limestone processing plant in Malawi.

Additionally, Afreximbank is driving the creation of special economic zones (SEZs) and industrial parks to overcome infrastructure challenges. Notable among these initiatives is the DRC/Zambia Electric Vehicle Battery Manufacturing SEZ, which positions Africa at the forefront of the global clean energy transition.

Harnessing Digital and Financial Platforms

The bank is also leveraging digital solutions, including the Africa Trade Gateway and the Pan-African Payment and Settlement System, to streamline transactions and market access. The AfCFTA Adjustment Fund, with a capital target of $10 billion, provides financial support to businesses adapting to the new trade regime, particularly those in mining.

A Bold Vision for Africa’s Mining Future

Denya’s address underscored that Africa’s vast natural resources, combined with the right investments and policies, can drive the continent’s transformation from a resource-dependent region into a globally competitive industrial powerhouse.

“The time to act is now,” he said. “Together, governments, financial institutions, and industry players can ensure that Africa’s mining sector becomes a catalyst for innovation, wealth creation, and long-term prosperity.”