AFRICA MINERAL WEALTH AFC REPORT: THE 2026 COMPENDIUM
ABUJA – The Africa Finance Corporation (AFC) has released a landmark study titled the “Compendium of Africa’s Strategic Minerals 2026,” revealing that the continent is sitting on an estimated $29.5 trillion in mineral value. Despite hosting 20 per cent of the global reserves of critical resources, the report highlights a sobering reality. Africa is currently capturing only a tiny fraction of the economic value embedded in these resources.
The most striking figure in the 2026 report is the $8.6 trillion worth of minerals that remain entirely undeveloped. This untapped wealth is equivalent to roughly two and a half times the continent’s annual Gross Domestic Product (GDP). According to AFC President Samaila Zubairu, the primary obstacle is not a lack of geology but a “binding constraint of conversion.” He notes that a structural misalignment exists where natural resources, infrastructure, and market demand rarely co-locate on the continent.
The Perverse Cost of “Paying Twice”
A central theme of the Africa mineral wealth AFC report is the trade structure that forces African nations to effectively pay twice for their own natural endowment. Under the current “export-first” model, African minerals are typically exported on a Free on Board (FOB) basis. This means African producers absorb all inland transport, logistics, and port handling costs just to get the raw ore to a ship.
In a perverse twist, the finished goods made from those same minerals are then imported back into Africa on a Cost, Insurance, and Freight (CIF) basis. African buyers end up paying again for shipping, insurance, and risk premiums. The result is an economic cycle that subsidises global value chains while leaving African economies with only marginal gains and a heavy bill for the very products their own soil provided.
The “Steel Leap” and the Industrial Gap
To illustrate the scale of missed opportunities, the report provides a startling comparison using the steel value chain. Africa hosts world class deposits of iron ore valued at approximately $2.8 trillion at the mine gate. However, if that same iron ore were processed into steel on the continent, its value would skyrocket to an estimated $25.4 trillion. This “Value Leap” represents a ten-fold increase that currently benefits industrial hubs in Asia and Europe instead of Africa.
By failing to industrialise, African nations are essentially exporting jobs and economic growth. This is evident in current market shocks. When foreign demand slows down, African mineral markets suffer immediate price collapses. In the Democratic Republic of the Congo, cobalt production quotas have been imposed to manage oversupply, while manganese operations in Gabon have faced periodic suspensions. These shocks occur even while Africa continues to import the very steel and batteries it needs to build its own roads and power grids.
A Roadmap for Industrial Sovereignty
The AFC calls for a radical shift toward “regional demand anchoring.” This strategy focuses on aligning mineral production with Africa’s own internal infrastructure needs rather than relying on the volatile cycles of foreign markets. The report argues that minerals like phosphates and potash, which are foundational for food security, are just as “strategic” to Africa’s future as lithium and cobalt are to the global energy transition.
The suggested roadmap includes targeted investments in shared rail corridors, such as the Lobito Corridor, and cross border power transmission. Reliability of power and transport connectivity are the decisive factors that determine whether beneficiation is commercially viable. Without these links, mineral wealth remains “latent” or stranded in the ground. Furthermore, the report identifies a “geological data gap,” noting that Africa receives significantly less exploration funding than Australia or Canada despite higher success rates.
The Window of Opportunity
As global trade tensions rise, the report suggests that Africa has a narrow but critical window to become a strategic player in the green energy transition. By moving beyond raw exports of lithium, manganese, and rare earths, the continent can finally turn its “hidden” wealth into a foundation for sustainable prosperity. The AFC initiative aims to reframe the sector through an African lens, converting endowment into execution pathways that serve the continent first.
