确保能源转型中的矿产资源：为南部非洲融资

IncollaborationwithDevelopmentBankofSouthernAfricaand

McKinseyandCompany

SecuringMineralsfortheEnergyTransition:

FinanceforSouthernAfrica

WHITEPAPERAUGUST2025

Images:GettyImages,AdobeStock

Contents

Foreword3

Executivesummary

5

Introduction

6

Theenergytransitionandcriticalminerals

6

TheSouthernAfricanRegion’sroleincriticalminerals

7

SARcountryprofiles

8

1

Contextsetting

10

1.1Methodology

10

1.2Problemdefinition

10

1.3Keychallenges11

2

Solutioncasestudies1

7

2.1Policymeasures1

7

2.2Investmentde-risking1

8

2.3Energystrategy

20

2.4Transportationinfrastructure

20

2.5Innovationpromotion2

2

2.6Industrialclusterdevelopment2

3

2.7Humancapitaldevelopment2

4

2.8Demandcertainty2

6

Conclusion2

8

Contributors2

9

Endnotes

30

Disclaimer

Thisdocumentispublishedbythe

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Thefindings,interpretationsand

conclusionsexpressedhereinarearesultofacollaborativeprocessfacilitatedand

endorsedbytheWorldEconomicForumbutwhoseresultsdonotnecessarily

representtheviewsoftheWorldEconomicForum,northeentiretyofitsMembers,

Partnersorotherstakeholders.

©2025WorldEconomicForum.Allrightsreserved.Nopartofthispublicationmaybereproducedortransmittedinanyformorbyanymeans,includingphotocopyingandrecording,orbyanyinformation

storageandretrievalsystem.

SecuringMineralsfortheEnergyTransition:FinanceforSouthernAfrica2

SecuringMineralsfortheEnergyTransition:FinanceforSouthernAfrica3

June2025

SecuringMineralsfortheEnergyTransition:FinanceforSouthernAfrica

Foreword

BoitumeloMosako

ChiefExecutiveOfficer,DevelopmentBankofSouthernAfrica(DBSA)

AttheDevelopmentBankofSouthernAfrica

(DBSA),ourmissionhasalwaysextended

beyondinfrastructurefinancing.Itisaboutenablinginclusivegrowth,alleviatingpovertyanddeepeningdevelopmentimpactacrossthecontinent.As

weconfrontthemajortransitionsofourtimethat

includeclimatechange-inducedchallenges,cyclicaleconomicheadwindsandtechnologicaldisruption,Africamustbeanactiveparticipantinshapingits

owndevelopmentpath.

Thetransitiontoalow-carbonfuturebrings

withitopportunitiesdrivenbytheglobalagendaofsuppressingthepaceofclimatechange,

sinceAfricaisabundantinthemineralsneededtodrivecleanenergytechnologies.However,

ifextractioncontinuesinthesamemanner

ashistoricalpractice,whichischaracterized

bytheexportofrawmaterials,limitedlocal

beneficiationandinadequatecommunityimpact,thecontinentwillonceagainmisstheopportunitytoconvertitsmineralwealthintostructural

socio-economictransformation.

DBSApartneredwiththeWorldEconomicForumtoproducethispaper,aplaybookofsolutions

thatreframesthecriticalmineralslandscapetoprioritizelong-termeconomictransformationanddiversificationacrosstheregion.DBSAseesa

uniquerolefordevelopmentfinanceinensuringthatvalueiscreatedandretainedlocally,that

communitiesaremeaningfullyincluded,andthateconomicparticipationbecomesmoreequitable.

ThispaperoutlinespracticalsolutionstoaccelerateinvestmentinSouthernAfrica’scleanenergyand

criticalmineralsvaluechains.Furthermore,itidentifiestheregulatory,institutionalandpolicyenablersthatwillde-riskthesectorandencourageprivatecapitalparticipationbyprovidingatoolboxforgovernments,developmentfinanceinstitutionsandindustrypartnerstoworkcollectivelytocloseinvestmentgaps.

Aswelookahead,ourcommitmentistodrive

andsupportsolutionsthatbuildindustrialresiliencethroughenablinginfrastructure,unlocktheregionalopportunityandbroadeneconomicparticipation.

SecuringMineralsfortheEnergyTransition:FinanceforSouthernAfrica4

Foreword

JörgenSandström

Head,TransformingIndustrial

Ecosystems,WorldEconomicForum

SouthernAfricaholdsvastreservesofcriticalminerals,yetcurrentinvestmentlevelsfall

shortoftheregion’spotential.Unlockingthispotentialisessentialnotonlyforadvancing

inclusivegrowthacrosstheregionbutalsoforstrengtheningtheresilienceofglobalsupplychainscriticaltotheenergytransition.

In2025,theWorldEconomicForum,withcontinuedsupportfromMcKinsey&Company,expandeditsSecuringMineralsfortheEnergyTransition(SMET)

initiativetotakearegionallyanchoredapproach,recognizingthatregionslikeSouthernAfrica

haveacentralroletoplayinenablingasecure,

sustainableandequitableglobalenergytransition.

IncollaborationwiththeDevelopmentBankof

SouthernAfrica,theForumconvenedkeyregional

stakeholderstoidentify,prioritizeandpromotethenecessaryenablerstoscaleinvestment

intoSouthernAfrica’scriticalmineralssector.

Thiseffortbuildsonrecentmultistakeholder

conveningsthatreflectbothregionalprioritiesandinternationalperspectivesonhowtoacceleratethedevelopmentofresponsiblemineralvaluechains.

Throughpractical,real-worldcasestudies,thispaperservesasatooltoinspirecollaborationandsupportthedevelopmentofinnovative

businessmodels.Itseekstounlockcritical

financingandinvestmentopportunities,

strengthenthepolicyandregulatorylandscape,andenhancetheoverallenablingenvironmentforthemineralsectorinSouthernAfrica.

Lookingahead,theSMETinitiativeisexploringopportunitiestoreplicatethisregionallyfocusedapproachinothergeographies,withthe

intentionofcatalysingtransformativechangeacrossregionalmineralvaluechains.

SecuringMineralsfortheEnergyTransition:FinanceforSouthernAfrica5

Executivesummary

ThispaperunlockssolutionstofinanceandscalecriticalmineralvaluechainsacrossSouthernAfrica.

Criticalmineralsareessentialtotheenergy

transition,formingthefoundationoflow-carbon

technologiessuchaselectricvehicles(EVs),energystoragesystemsandphotovoltaiccells.The

InternationalEnergyAgency(IEA)classifiesthemasvitalyetvulnerabletosupplydisruptions.ThisreportfocusesoncriticalmineralsfoundintheSouthernAfricanRegion(SAR)–includingcopper,cobalt,

graphite,lithium,manganese,chromium,platinumgroupmetals(PGMs)andvanadium–andanalysestheirvaluechainsacross10SARcountries:Angola,Botswana,DemocraticRepublicoftheCongo

(DRC),Madagascar,Mozambique,Namibia,SouthAfrica,Tanzania,ZambiaandZimbabwe.

ManySARcountrieshavehigherreserves-to-

productionratiosthanglobalpeers,allowinglongerproductionatcurrentratesandunderscoringtheirroleinglobalsupply.Despitetheselargereserves,explorationisunderfinancedinSARcountries,

attractinglessthan10%oftotalglobalspending.

DespiteSAR’smineralwealth,financingchallengeshinderthedevelopmentofitsvaluechains.

FromJanuarytoJune2025,theWorldEconomicForum’sCentreforEnergyandMaterialsand

theDevelopmentBankofSouthernAfrica

(DBSA)organizedconsultationsandworkshopstodiscussthefinancingchallengeswithkey

regionalstakeholders.

Financingchallengesweregroupedintoeight

themes:policyuncertainty,investmentrisks,energyaccess,transportationbarriers,innovationlag,paceofindustrialization,skillgapsanddemandvolatility.Workshopparticipantsproposedprovenand

innovativesolutionslikedesigningde-riskingfinancestructures,upgradinginfrastructurenetworks,

adoptingadvancedtechnologiesandleveraging

offtakeagreementstoensurepredictablerevenues.

Thispaperoutlinesthesolutionsthatemerged,illustratingeachwithacasestudythatoffers

areplicablemodelforSARcountries.Some

spanmultiplecountries,liketheLobitoCorridorinAngola,DRCandZambia,whileothers

highlightnationalefforts,likeNamibia’s“greeniron”projectwiththeEuropeanUnion(EU).

TheinclusionofinnovationpilotedinChilereflectshowsolutionsfromoutsidetheregioncanalsobeadaptedandscaledtoenhanceminingoperationsinSouthernAfrica.

SecuringMineralsfortheEnergyTransition:FinanceforSouthernAfrica6

Demandfor

criticalminerals

isexpectedto

quadrupleby2040.

Introduction

Surgingdemandforcriticalmineralsoffersanopportunitytoexpandanddiversify

globalsupplychains.

Theenergytransitionandcriticalminerals

Risingcarbonemissionshavedrivenglobal

warmingandmoreextremeweather,makingthe

shifttolow-carbontechnologiesessential.The

energytransition,fromfossilfuelstorenewables

likesolar,wind,hydroandgeothermal,alsorequiresdecarbonizingkeysectorssuchastransport.

Thetransportationsectoraccountsfor37%of

globalemissionsandhasgrownatanaverage

annualrateof1.7%overthepast30years,faster

thananyothersector.1Decarbonizingtransportationwillhingeonvariousenablers,includingfaster

adoptionofEVsasasustainablealternativetointernal-combustionengine(ICE)vehicles.

Renewableenergyandelectricvehicle(EV)

developmentrelyontechnologieslikebatterystorage,solarpanels,windturbinesand

advancedgrids.Keymineralssuchaslithium,cobalt,nickelandgraphitearecriticalfor

lithium-ionbatteries,whilerareearthelementsareusedinmagnetsforwindturbinesand

EVmotors.CopperisessentialforwiringandPGMssupportfuelcellsandelectrolysers.2

Thesemineralsandothersarecollectivelyreferredtoas“criticalminerals”,whichtheInternational

EnergyAgency(IEA)classifiesasmineralsvital

fortheenergytransitionbutvulnerabletosupply

disruptions.3MostofthecountriesandmultilateralorganizationsinvolvedintheIEAalsodefinealistofcriticalmineralsbasedontheirstrategicneeds.

TheAfricanUnion’sGreenMineralStrategydefines“greenminerals”as“mineralsthatareusedin

cleanenergytechnologiesandgreenindustries,

thatcanmaximizethebenefitsofAfrica’smineral

endowmentandthosethatarefeedstocksfor

resource-basedindustrializationofcleanenergy

industries.”4ThiscontrastswithapproachesliketheUnitedStates(US)EnergyActof2020,whichlists50criticalmineralsbasedoneconomicandnationalsecurityneeds,reflectingafocusonsupplysecurityratherthanproduction.5

UnderIEA’snet-zeroscenario,demandforcriticalmineralsisexpectedtoquadrupleby2040,drivenbycleanenergytechnologies.6However,reservesandproductionarehighlyconcentrated,risking

supplydisruptionsamidgrowingdemand.7For

example,theDRCholds55%ofglobalcobalt

reservesandproduces74%ofglobalcobalt

supply.Chinaproduces69%oftheworld’srareearthelementsandholds40%ofglobalreserves.Indonesiaaccountsfor50%ofnickelproductionand42%ofreserves.

SecuringMineralsfortheEnergyTransition:FinanceforSouthernAfrica7

TheSouthernAfricanRegion’sroleincriticalminerals

socialdevelopment.However,Africa’sexplorationspendingin2024was$1.3billion,only10.4%of

thetotalglobalspending,9whileSARcountries’

percentagesharewasevensmaller.Incomparison,AustraliaandCanadaattracted$2billionand

$2.5billion,respectively,16%and20%ofglobalexplorationspendingin2024,largelydrivenbyprivatesectorinvestment.

Comparedtoglobalpeers,SARcountrieshavehigherreserves-to-productionratiosformostminerals(exceptlithium),suggestinggreater

extractionpotential.

TheSouthernAfricanRegion(SAR),whichincludesAngola,Botswana,DemocraticRepublicofthe

Congo(DRC),Madagascar,Mozambique,Namibia,SouthAfrica,Tanzania,ZambiaandZimbabwe,

isexpectedtoplayacrucialroleintheenergy

transition.Nearly30%oftheworld’sprovencriticalmineralreservesarefoundintheregion,whichalsoincludesapproximately50%oftheworld’scobaltreserves,20%oftheworld’sgraphitereservesand10%oftheworld’scopperreserves.8

CriticalmineralsfoundinSARcountriescanbeleveragedtosupporttheregion’seconomicand

FIGURE1

CriticalmineraldepositsintheSouthernAfricaRegion

Areaenlarged

t

5th9th

Tanzania

,'

3rd

Mozambique

DRC1st5th

8th

4th

Angola

Madagascar

Namibia

Zimbabwe

Zambia11th

8th

Botswana

SouthAfrica

1st

LocationofdepositsGlobalrankinreserves

Deposits

CopperNickelLithiumGraphiteRareearthsCobaltAllothers1

.

Note:1.Includesplatinumgroupmetals,manganese,chromiumanddiamond

.

Source:SNLmetalsandminingintelligence,UnitedStatesGeologicalSurvey

FIGURE2Reserves-to-productionratioinSouthernAfricanRegioncountries

At2024productionrates,SARcanproducecriticalmineralsforlongerthan

Non-exhaustive

othercountries,highlightingtheimportanceofitsreservestoglobalsupplychains

Reserves-to-productionratio1

Copper

Cobalt

Graphite

Chromium

Manganese

Platinum

groupmetals

Vanadium

Lithium

SAR

countries

2431

2738

720

303333

491

10

76

328

35

54

522

DRC

Zambia

DRC

Madagascar

Madagascar

Mozambique

Tanzania

SouthAfrica

Zimbabwe

SouthAfrica

SouthAfrica

Zimbabwe

SouthAfrica

Namibia

Zimbabwe

Global

peers

1923

2322

188

53

13

82

24

73

64

86

16

39

Indonesia

China

Indonesia

PapuaNewGuinea

China

Norway

SouthKorea

Brazil

Turkey

Gabon

Canada

UnitedStates

Brazil

Brazil

China

Note:1.Anindicationofthenumberofyearsofpotentialproductionat2024productionrates.

Source:USGeologicalSurvey.

SARcountryprofiles

AnoverviewofSAR’scriticalmineralssectorhighlightscurrentstrategiesandrevealsopportunitiestogrowthevaluechainfromexplorationtoprocessing.

Despiteholdingaround30%ofglobalcritical

mineralreserves,10SouthernAfricaattractslessthan10%ofglobalminingexplorationspending,

highlightingtheregion’sfinancinggapanduntappedpotential.11

Torespondtothechallengeofunderfinancing,SARcountrieshavetakenseveralpolicyactionsrecently,suchasamendmentstominingregulations,local

valueadditionrequirementsandexportbans.12

SecuringMineralsfortheEnergyTransition:FinanceforSouthernAfrica8

SecuringMineralsfortheEnergyTransition:FinanceforSouthernAfrica9

TABLE1Examplesofpubliclyannouncedpolicyactions

Non-exhaustive

Country

Overviewofcriticalmineralssector

Recentpolicyactions

Angola

Focusingonincreasingproductionofcriticalmineralssuchaslithiumandrareearthelements(REE)

FundoSoberanodeAngola(sovereignwealthfund)investedanadditional$9millioninPensana,s

Longonjorareearthsproject.

TheUnitedStatesInternationalDevelopmentFinanceCorporationbackedafeasibilitystudyforrareearthsprocessingin2024.

Botswana

Emergingcopperproducer,particularlyintheKalahariCopperBelt,sawafive-foldincreaseinproductionfrom12kilotonnes(kt)in2021to55ktin2023.

AnamendmenttotheexistingMinesandMineralsActincreasedlocalownershipinminingprojects.

Diversifiedexplorationspendingincreasedtheshareofnon-diamondminerals(copperandnickel)from24%in2006to70%in2024.

DRC

Makingheavyinvestmentinexploration;67%oftotalexplorationinvestmentisincopper,ensuringthattheKamoa-KakulaComplexproducestheworld’shighestcopperoregrade.

Hasa74%shareofglobalcobaltproduction,refiningactivityremainslow.Aimingtoenhancecobaltrefiningcapabilities.

Temporarilybannedcobaltexportsinearly2025tocurboversupply,stabilizeglobalpricesandenhancedomesticprocessingcapabilities.

ExertingpressureontheInternationalConference

oftheGreatLakesRegiontoenforcestrictermineraltracingstandards.

Madagascar

Hasa6%shareinglobalgraphite

production,1%inglobalnickelproduction.

Creatinginfrastructureinareaswithmines,whicharelocatedinremotelocations.

RecentlypublishedMiningCodeincorporates

provisionstoattractinvestment,includingenhancedminingsectorgovernanceandassuranceoffair

distributionofminingbenefits.

Mozambique

Comprises6%ofglobalgraphiteproduction.

Securitychallengeshavecausedexplorationspendingtodropfrom$25.5millionin2014tojust$1.4millionin2024.

MozambiqueMiningExplorationCompany,

astate-ownedcompany,isworkingtofurtherincreasegraphiteextraction.

Namibia

CriticalmineralssuchasREEandlithiumareindevelopment/earlyproductionstage.

Bannedexportofunprocessedcriticalmineralsin2023,includinglithiumandREE.

SignedanEU-Namibiastrategicpartnershiponsustainablerawmaterialsvaluechainsandrenewablehydrogen.

SouthAfrica

Provides40%ofglobalmanganesesupply(2024).Istheleadingproducerofplatinumgroupmetalsand

chromium.

Publishedamineralsexplorationstrategy,includingacriticalmineralslist.

AnnouncedaZAR500million(~$27million)criticalmineralsfundtosupportexplorationactivities.

Tanzania

Isbuildinggraphiteandrareearthreserves.

Doubledexplorationspendingfrom2021to2022;isredirectingmoreexplorationinvestmenttowardsnickelandcopper.

IsdevelopingaCriticalandStrategicMineralsStrategy(atconsultationstage).

Isundertakinglegalreforms(MiningActCAP123)toattractinvestments.

Zambia

Hasa3%shareofglobalcopperproduction.

Targets3milliontonnesofcopperoutputby2031.

Increasedexplorationinvestment89%year-on-yearin2022,from$42.1millionin2021to$79.6million.

Hasdraftedalocalcontentpolicytoincreasetheparticipationofdomesticbusinessesinthenation’sminingindustry.

LaunchedtheIntegratedMiningInformation

System(ZIMIS)toensuretransparencyinmanagingmininglicenses.

Zimbabwe

Lithiumproductionhasincreasedeight-foldfrom417ktin2020to3,400ktin2023;thecurrentshareisat2%ofgloballithiumproduction.

IntroductionoftheBaseMineralsExportControlOrderin2022issettoboostprocessingandlocalvalueaddition.

Amendmentstothetaxregimeandexpansionofthedefinitionof“beneficialowner”and“controller”

detercorruption.

Source:Presssearch,literaturereview,CSIS,GlobalCriticalMineralsOutlook2025.

Contextsetting

AregionaleffortcanmobilizeinvestmentandacceleratethedevelopmentofcriticalmineralsinSouthernAfrica.

1.1

Methodology

In2024,theWorldEconomicForumconveneda

public-privatecommunityof50expertsthatsurfacedkeyinvestmentbarriersandproposedsolutionstoacceleratethedevelopmentofcleanenergycapitalinSouthAfrica.Thisworkwasexpandeduponin2025tolookatthebroaderSARandfacilitatesolutions

thatcouldacceleratefinancingforcriticalminerals.

ThisregionaldeepdiveispartoftheSecuring

MineralsfortheEnergyTransition(SMET)initiativelaunchedbytheWorldEconomicForum,with

McKinsey&CompanyasaknowledgepartnerandincollaborationwiththeDBSA.

Oversixmonths,publicandprivatestakeholders

engagedinconsultationsanddialoguetoidentify

financinggaps,policyneedsandopportunitiesforlocalvalueadditiontoboostinclusivegrowth.Thisreportprovidesguidanceforsolutionsthatenhancelocalimpactandglobalsupplyresilience,aswellasrealcasestudiesthatserveasexamplestoinspireSARcountries.

Problemdefinition

1.2

TheSMETinitiativebringstogetherkey

stakeholderstoaddressfinancingbarriersand

unlockthecriticalmineralsvaluechainintheregion.DevelopingthisvaluechaininSARcouldimproveminingrevenuesandleadtoeconomicgrowth

andsocio-economicdevelopment.13

Thefollowingcoreproblemsemergedfromstakeholderdiscussions:

–SARattractsalowshareofglobalexplorationfinancingdespitehighreserves-to-productionratios.

–Thisunderfinancingleadstoreserves

notbeingleveragedtotheirfullpotential.

1

SecuringMineralsfortheEnergyTransition:FinanceforSouthernAfrica10

SecuringMineralsfortheEnergyTransition:FinanceforSouthernAfrica11

FIGURE3Keychallengesandpotential“unlocks”identifiedthroughmultistakeholderconsultations

ChallengesEffectonfinancingPotential“unlock”Solutiontheme

Ambiguityinregulations

decreasesinvestorconfidence

Layingoutstable,clearandconsistentregulations

Policy

uncertainty

Policymeasures

Investmentde-risking

Innovativefinancingstructuresandpartnershipsforde-risking

△

Investmentrisks

Directlyaffectsproject

stabilityandcanmakeit

unattractiveforinvestments

Energyaccess

Energystrategy

Transportationinfrastructure

Innovationpromotion

Industrialclusterdevelopment

Humancapitaldevelopment

Demandcertainty

Destabilizesminingoperationsandreducesprojectviability

Constrainsprocurementand

logistics,leadstosub-optimal

miningoperations

Laginadoptinglatest technologiesleadstooperationalinefficiency

Slowindustrializationandfocus

ononlyrawmaterialexports

lowersvalue-add

Unskilledworkforceleadsto

inefficientoperations,lowers

projectattractiveness

Transportationbarriers

Innovationlag

Paceof

industrialization

Skilldeficit

Affectsrevenuestreampredictabilityandlowers

Demandvolatility

projectattractiveness

Strategicinvestmentsto

enablestablepowerfor

miningoperations

Buildingnewtransportation

networksandupgrade

existingones

Implementinglatest

technologiesforenhancing

operationalefficiency

Developingindustriesforlocalvalue-addandbeneficiation

Preparinglocalworkforcewith

market-readyskillstoboost

operationalefficiency

Ensuringpredictablerevenuestreamsfortheminingproject

Source:Consultationsandworkshopsconductedwithstakeholders.

1.3

Keychallenges

Consultationsandworkshopsessionsfocusedonfinancingchallengesandthemissedopportunity

fromlimitedlocalbeneficiation,asmostprocessingoccursoutsidetheregion.DevelopingdownstreamcapabilitiescouldbetterintegrateSARintogloballow-

carbonvaluechains,supportinglocaldecarbonization,energysecurityandindustrialgrowth.

Thechallengessurfacedbythecommunityhavebeenclassifiedintothefollowingeightthemes:

SecuringMineralsfortheEnergyTransition:FinanceforSouthernAfrica12

1Policyuncertainty

Whilepoliciesareoftendesignedtoadvancenationalpriorities,inconsistenciesandgovernanceuncertaintycouldstillundermineinvestorconfidence.

BOX1Illustrationofpolicyuncertainty

Zimbabweimposedaspecialcapitalgainstaxof20%ontheproceedsoftransferringaminingtitle,whichminingcompaniesoperatinginthecountryhavedeemedhighanddetrimentaltotheiroperations.14

Policyand

regulatoryfactors

Tradeandtaxpolicy

Localcontent

requirementsandbenefitmandates

Statecapacitytoenforcepolicies

Keychallenges

–Tariffs,exportbansandinconsistentregulationscanhinderexports

–Uncertaintaxregimesandvolatile,highlycomplexandsubjectivetaxlegislationcandirectlyimpactminingactivitiesthroughambiguousroyaltyrates

–Regulatorybarrierstobeneficiationcandiscouragelocalvalueadditionandrefinement,leadingtotheexportofrawmaterialsinsteadofprocessedgoods

–Delaysingovernmentapprovalsandlackofconsistencyinregulatoryframeworkscanhinder

projecttimelines.Similarly,lackofcapacitytostructureandde-riskdealsandpolicyinconsistencycanleadtolegaldisputesandgovernanceuncertaintyintheformofregulatorychanges,whichcaninturndeterinvestments

2

Investmentrisks

Miningisaninherentlyriskyactivity,whichcanbecompoundedbyotherpotentialrisksinSAR.

BOX2

investmentrisk

Illustrationofaconsequenceof

Investmentriskcategory

Keychallenges

Securingearly-stage

investments

–Limitedaccesstodiversefundingoptionsduringdevelopmentoftenforcescompaniestogiveupsignificantequity

–Early-stagefinancingforlarge-scaleprojectsinhigh-riskregionsremainsakeychallenge

–Financialinstitutionsmayfacemandaterestrictionsandshorttenures,limitingtheirabilitytosupportcriticalmineralsinvestment

Sectorconstraints

–Miningcriticalmineralsishighlycapital-intensive,andthelackoflocalexpertiseinadvancedprocessingfurtherdetersinvestment

–Thecompetitivenessoflocalprocessingandrefiningisoftenhinderedbymarketdominanceandstatesubsidiesprovidedinmarketsoutsidetheregion

Sector-specificrisksandbarriers

–InvestorsareoftenwaryofunstableeconomicconditionsinsomeSARcountries,leadingtoreluctancewhencommittingtofinancingprojectsintheregion

–Thelackofqualitygeologicaldataandissuesaroundbankabilitybarrierscanmakeitchallengingtosecureinvestmentforextractionintheregion

AccordingtoapartnerattheCriticalMineralsFund,around$17billionofspecialistminingcapitalisheldbyprivateequityfundsglobally,withonly2.8%focusedonAfrica.15

SecuringMineralsfortheEnergyTransition:FinanceforSouthernAfrica13

3Energyaccess

Withoutaccesstoreliableenergy,theviabilityofprojectsremainsquestionableandcan

deterinvestors.ESGstandardsplayakeyroleinpromotingresponsibledevelopment,andinsomecases,specificcriteria–suchasemissionsthresholdsorsupplychaintraceability–mayinfluencetheavailabilityorstructureoffinancing.

BOX3Illustrationofenergyaccesschallenges

Keychallenges

–Bankruptutilitiescancausefrequentpoweroutages

–Insufficienttariffscanhinderutilities’abilitiestocovercosts,investingenerationandmaintaininfrastructure

–Cross-bordergridlimitationscanmakeitdifficulttoshareexcesspower

–Lack