There is an urgent need to unlock investment into Southern Africa’s critical minerals sector to meet soaring global demand for clean energy and low-carbon technologies, according to a new report launched by the World Economic Forum (WEF) in Johannesburg.
The report — produced in partnership with the Development Bank of Southern Africa (DBSA) and McKinsey & Company — emphasizes that Southern Africa is positioned to become a cornerstone of the global energy transition, provided that financing, governance, and local value-creation gaps are urgently addressed.
Global Shifts, Local Opportunities
The WEF report, Investing in Southern Africa’s Critical Minerals: A Global Imperative for the Energy Transition, comes amid mounting pressure on supply chains following China’s April export ban on medium and heavy rare earth elements — materials essential for permanent magnets used in wind turbines, electric vehicles, and electronic goods.
This global disruption highlights the strategic importance of Southern Africa’s resource base, which includes the world’s richest deposits of platinum group metals (PGMs), cobalt, lithium, manganese, graphite, and rare earths.
“The race to decarbonize has made minerals the new oil,” the report states. “For Southern Africa, this is not just an export opportunity — it’s a development opportunity.”
Ten Nations, One Regional Strategy
The report focuses on ten key countries — Angola, Botswana, the Democratic Republic of the Congo (DRC), Madagascar, Mozambique, Namibia, South Africa, Tanzania, Zambia, and Zimbabwe — outlining how coordinated investment and policy alignment could transform the region into a critical minerals hub for the global market.
By integrating cross-border infrastructure, transparent governance, and regional value chains, the region could position itself as a supplier not just of raw materials, but of refined, high-value products essential to global clean-energy systems.
Bridging the Financing Gap
Despite its mineral wealth, Southern Africa continues to face significant financing barriers. Many exploration and mid-tier mining projects remain under-capitalized, while high logistics costs, unreliable power supply, and regulatory uncertainty deter international investors.
The WEF report calls for:
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Blended finance mechanisms involving public, private, and multilateral partners;
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De-risking frameworks to attract institutional capital and diaspora investors;
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Increased investment in downstream processing and beneficiation to retain value locally;
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Sustainable infrastructure corridors connecting mines to ports and power grids.
The Development Bank of Southern Africa (DBSA) noted that new regional partnerships — such as those under the African Green Infrastructure Investment Bank (AfGIIB) — could help mobilize billions in climate-aligned funding for the mining and processing sectors.
From Extraction to Transformation
Southern Africa’s critical minerals are central to producing electric vehicles, solar panels, and battery storage systems that power the clean-energy transition. But without local beneficiation, the region risks missing out on the economic multiplier effects of industrialization.
McKinsey & Company’s contribution to the report underscores that value-added processing could multiply GDP contributions by up to four times compared to raw exports alone.
“Africa’s future is not in exporting ore — it’s in exporting knowledge, technology, and energy materials refined on African soil,” the study emphasizes.
A Call to the African Diaspora and Global Partners
The report highlights the need for bold, inclusive investment — not only from governments and multilateral institutions, but also from the African diaspora, whose global capital networks and expertise can help accelerate project financing.
Diaspora-led investment funds, impact bonds, and venture vehicles could bridge the funding gap for battery-metal refining plants, green-hydrogen corridors, and logistics modernization.
“The diaspora can play a catalytic role in repositioning Southern Africa as the global anchor for energy transition minerals,” said one industry analyst during the Johannesburg launch.
The Path Forward
To secure a resilient and equitable energy future, Southern Africa must balance economic growth, environmental stewardship, and social inclusion. The WEF report concludes that unlocking the region’s potential will depend on:
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Transparent and predictable mining policies,
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Regional collaboration under AfCFTA,
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Climate-smart extraction practices, and
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Greater participation of local and diaspora investors.
As the world races toward net-zero emissions, Southern Africa’s minerals could become the backbone of global sustainability — if investment is mobilized with purpose, partnership, and vision.
