In a candid address at the recent African Development Bank Annual Meetings held in Abidjan, Côte d’Ivoire, Mr. Adeniran Aderogba, President and CEO of the Regional Maritime Development Bank (RMDB), revealed the daunting challenges constraining Africa’s mining sector growth. Despite the continent’s abundant mineral wealth, Aderogba lamented that systemic financial and infrastructural barriers continue to stifle development, keeping much of Africa’s vast resources untapped.
Speaking during a high-profile panel discussion themed “Mobilising Domestic Capital for Africa’s Mining Sector,” Aderogba highlighted four critical hurdles that have persistently undermined mining progress: a crippling shortage of early-stage capital, lack of quality geological data, weak project development activity, and inadequate integrated infrastructure.
“Africa’s mineral wealth is indisputable. However, the real issue lies in transforming this potential into tangible productivity. The sector faces a systemic shortage of early-stage capital, which impedes exploration, geological mapping, and project preparation. Without addressing these foundational issues, we risk leaving billions of dollars worth of resources underground,” Aderogba emphasized.
He pointed out that while African financial institutions are increasingly investing in value-added downstream activities such as mineral processing and manufacturing, the upstream segment—where exploration and initial mining projects occur—remains largely unfunded. This is largely due to perceived high risks and uncertain returns, deterring banks and investors from committing funds to early-stage ventures.
To overcome these challenges, Aderogba called for stronger involvement by African governments and central banks. He advocated for the introduction of innovative financing mechanisms such as mining bonds, mineral royalty securitisation, and blended finance models combining public and private sector funds to de-risk investments. He also stressed the importance of credit enhancement tools and fiscal incentives to create a more conducive investment climate.
“Relying solely on foreign capital is not sustainable. Africa needs a resilient domestic financial system capable of supporting the entire mining value chain, from exploration through beneficiation and beyond,” Aderogba stated. He urged finance ministries to offer tax incentives and central banks to implement investment-friendly monetary policies and guarantee frameworks to encourage lending to mining projects.
Africa is a global powerhouse for critical minerals essential to the world’s clean energy transition. The continent holds two-thirds of global cobalt reserves, 30 percent of lithium, 20 percent of graphite, and more than 30 percent of manganese. Aderogba highlighted countries like Guinea, home to vast bauxite deposits; Gabon, a leading manganese producer; and the Democratic Republic of Congo, supplying 70 percent of the world’s cobalt, as key players in this sector.
However, he warned against perpetuating Africa’s historical reliance on exporting raw materials without adding value locally. “Mining alone is not enough. Real economic transformation lies in processing minerals domestically to create industries, jobs, and sustainable economies. Intra-African trade must be boosted by products derived from local beneficiation, which can then be efficiently transported across borders through improved maritime and logistics networks,” he added.
The RMDB chief’s remarks come at a crucial time as Africa seeks to leverage its natural resources to fuel industrialisation and economic diversification. Addressing the capital shortage and infrastructural deficits in the mining sector will be vital to unlocking the continent’s full potential and securing its place at the center of the global energy transition.
Mining remains a significant contributor to African economies but is hampered by underinvestment and risk aversion from local financial institutions. The high upfront costs of exploration and long project lead times often discourage traditional lenders. Furthermore, the lack of comprehensive geological data makes investment decisions uncertain.
Experts believe that blended finance—where public funds are used to attract private capital—could be a game-changer. This model reduces risk exposure and improves project viability, making mining ventures more attractive to commercial banks and investors.
In addition to financial constraints, inadequate infrastructure such as roads, railways, and ports also limit the sector’s expansion. Coordinated efforts to improve transport and energy infrastructure would lower operational costs and enhance regional integration.
With global demand for minerals critical to renewable energy technologies rising, Africa’s mining sector stands at a crossroads. Effective policy reforms, improved financing structures, and stronger public-private partnerships are imperative to harness the continent’s mineral wealth for sustainable growth.