Afreximbank calls for bold action in Africa’s mining sector at Indaba 2025

At the African Mining Indaba 2025 in Cape Town, the African Export-Import Bank (Afreximbank) urged African nations to take control of their natural resources, create employment opportunities, and establish industries that foster long-term prosperity

Addressing an audience of African leaders, policymakers, mining executives, and global stakeholders, the bank emphasised the need for strategic transformation in the continent’s mining sector.

Speaking at the ministerial symposium, Denys Denya, Afreximbank’s senior executive vice-president, underscored that Africa stood at a pivotal moment. He warned that the continent must choose between continuing to export its raw materials with minimal returns or implementing decisive measures to take ownership of its resources.

“While the global mining industry generated approximately US$1.7 trillion in revenue in 2023, Africa’s share of this wealth remains disproportionately low. Our continent extracts the raw materials that power the world’s industries, yet it is estimated that we retain as little as between 4% and 20% of the total value of our minerals due to minimal local processing and limited downstream development. The result? Lost economic opportunities, exposure to volatile commodity cycles and a persistent reliance on external markets for refined products derived from our own resources,” stated Denya.

“The choice is ours. The time to act is now. Let us work together: governments, financial institutions, investors, and industry players to build an Africa where mining is not just about extraction but about transformation, innovation and wealth creation,” remarked Denya.

Stronger collaboration

He highlighted that Africa possesses the necessary resources, market potential, and policy frameworks to evolve from a raw materials exporter into a globally competitive industrial powerhouse. However, he stressed that achieving this vision requires decisive action from all stakeholders. “Policymakers must implement clear, enforceable regulations that mandate local value addition and create investment-friendly environments. Private sector investors must step up with capital and technology to develop processing, refining, and manufacturing facilities.”

Denya called for a fundamental shift in Africa’s approach to mining, advocating for investment in refining, smelting, and advanced manufacturing rather than just extraction. “We must move beyond extraction and invest in refining, smelting and advanced manufacturing. African nations must increase local processing capacity for minerals such as bauxite, lithium, cobalt and iron ore,” Denya continued. 

He also stressed the importance of regional cooperation, noting that no single country can develop a complete mining value chain in isolation. He pointed to the African Continental Free Trade Area (AfCFTA) as a key mechanism for strengthening intra-African mineral value chains and fostering cross-border collaboration. Additionally, he emphasised the need for capital investment in mining-related infrastructure, technology transfer, and workforce development.

“Our mining policies must also prioritise environmental, social and governance standards, ensuring that mining benefits communities rather than displacing them,” he added. He argued that such an approach would generate millions of skilled jobs for Africa’s youth, reduce dependence on volatile international markets, and boost intra-African trade.

Reaffirming Afreximbank’s commitment to Africa’s mining sector, Denya revealed that the bank had approved over US$1bn in financing for mining and mineral sector projects over the past three years. This includes funding for a bauxite processing plant in Guinea, support for the expansion of a manganese processing plant in Gabon, and working capital financing for a diamond company in Botswana.

Among other significant initiatives, Afreximbank is backing a petrochemical fertiliser plant in Angola, a titanium dioxide pigment plant in South Africa, and a feasibility study for a limestone processing plant in Malawi.

Denya also highlighted the role of the US$10bn AfCFTA Adjustment Fund, managed by Afreximbank’s investment arm, FEDA, in supporting businesses and countries adapting to the new trade regime. He noted that the bank’s efforts to harmonize standards and implement the Africa Collaborative Transit Guarantee Scheme would ease cross-border movement of minerals and mining equipment, addressing logistical challenges.

Additionally, Afreximbank is leveraging digital solutions such as the Africa Trade Gateway and the Pan-African Payment and Settlement System to enhance market access and streamline transactions. These tools aim to maximise Africa’s mineral wealth for industrialisation, value addition, and economic resilience.

Denya also underscored Afreximbank’s efforts to overcome infrastructure limitations that impede industrial growth. He highlighted the bank’s collaboration with development partners in expanding industrial parks and special economic zones (SEZs).

One of the most groundbreaking initiatives under this framework is the DRC/Zambia Electric Vehicle Battery Manufacturing Special Economic Zones. This project is positioning Africa as a key player in the global energy transition by establishing battery precursor SEZs, enhancing the two nations’ competitiveness in the battery electric vehicle value chain.

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