Africa’s vast mineral reserves have placed the continent at the centre of a global energy transition. From powering electric vehicles to supplying renewable energy infrastructure, these resources are essential to the world’s low-carbon future and Africa holds many of the keys. As nations race to secure stable, long-term access to critical minerals, the spotlight is increasingly turning toward African markets.
For many developing economies, foreign direct investment is the largest source of external finance along with official development assistance and remittances. In Africa’s mining economies it creates skilled jobs, transfers technology, and opens access to global markets.
It also creates local businesses that feed into investors’ supply chains.. In many countries, mining is a vital contributor to the national budget and has the potential to drive broad‑based economic growth and development. To ensure that mining projects deliver on the promise of FDI in addition to unlocking the revenue potentials needed to achieve the Sustainable Development Goals, governments and investors must anchor projects in clear, fair agreements and strong governance.
For assurance, , a contractual process is used to negotiate and agree the complex relationship between host governments and mining companies. The negotiation of large-scale, complex investment contracts is a delicate endeavour. The host government is seeking to maximize revenue from mineral projects and balance the expected positive economic benefits for its citizens with potential adverse social and environmental effects. On the other hand, the investor wants to maximize its share of the revenue from the project while also seeking to mitigate risk and protect its investment.
A balanced settlement need to be carefully negotiated, well‑prepared, and expertly documented.
EU Accelerates Mining Investments Across Africa
The EU increased financial and technical support for Africa’s mining sector in the first half of 2025, aligning its foreign investment strategy with the continent’s agenda to shape the global energy transition. In June 2025, the EU named four Africa-based projects as part of its 13 globally strategic initiatives under the Critical Raw Materials Act. The projects include Mkango Resource’s 8,425-ton-per-annum Songwe Hill Rare Earths Project in Malawi and Frontier Rare Earths’ 4,000-ton-per-annum Zandkopsdrift magnet-grade rare earths project in South Africa. The Maniry Graphite Project in Madagascar led by Evion Group and a 6,000-ton-per-annum cobalt refinery in Zambia are also among the projects set to receive EU financial support and technical assistance.
Amid increased EU support for African mining projects, the annual Mining on Top Africa conference set to take place from the 7th to the 8th of July 2026 in Paris, France will showcase lucrative investment and cooperation opportunities for EU companies in Africa’s burgeoning mining sector.
Two new programs announced by the EU this June have deepened the bloc’s mining partnership with the Democratic Republic of Congo (DRC) – the world’s top cobalt producer and Africa’s largest copper producer. The programs include the Cobalt for Development project which aims to formalise and uplift small-scale mining operations in the DRC. Meanwhile, the upcoming Panafgeo + geological mapping program-led by France’s Bureau of Geological and Mining Research (BRGM) in collaboration with DRC’s Ministry of Mines will enhance the country’s geological knowledge base.
In addition, the EU has announced a 4.7 billion Euro financing package to support mineral processing, green hydrogen and transport infrastructure in South Africa, the world’s largest producer of platinum group metals. The financing package reflects a growing focus on securing diversified and sustainable mineral supply chains.
With bold moves that build capability and credibility, several countries are using these investments to realise their full potential. Highlights include:
Senegal attracted $2.641 billion in FDI, solidifying its role as West Africa’s leader in foreign investment. The upcoming Senegal International Mining conference will showcase investment opportunities from 4 to 6 November 2025 in Dakar, Senegal.
Uganda secured $2.886 billion in FDI, reflecting its increasing economic attractiveness.
Ethiopia attracted $3.263 billion in FDI, and remains one of Africa’s fastest-growing economies.
South Africa secured $5.2 billion in FDI, maintaining its status as a leading destination for investment in Africa.
Egypt led with a remarkable $9.841 billion in FDI. Despite global uncertainty, Egypt remains a preferred investment destination, due to its strategic location and investor-friendly policies.
In conclusion, Africa remains a focal point for global mining investment and this is consistently reflected at key mining gatherings across the continent including at the anticipated SIM Senegal (04-06 Nov), IMC Morocco (24-26 Nov), ZIMEC 2026 Zambia (25-26 March), MMEC 2026 Mozambique (06-07 May) and MOTA 2026 Paris (07-08 July). African Government will have to be deliberate in seeking fair public benefits while enabling competitive investor returns. Just as importantly, deeper collaboration within the continent, across policy, infrastructure, skills, and supply chains will help ensure that foreign capital catalyses resilient, inclusive growth rather than operating in isolation.
