Critical Minerals: Africa Finance Corporation Eyes Iron Ore and Uranium InvestmentsCritical Minerals: Africa Finance Corporation Eyes Iron Ore and Uranium Investments

The Africa Finance Corporation (AFC), based in Lagos, wants to widen its mining portfolio, which already covers gold, bauxite, copper and manganese. Franklin Edochie, AFC's deputy director and head of mining, said the lender is "working towards financing those projects" and hopes to announce something on uranium and iron ore investments "within the next 6 to 12 months".

What AFC says it is after

Edochie spoke on the sidelines of a mining conference in Cape Town. He said AFC's interest is broad, spanning precious metals, base metals and critical minerals, and that it wants a bigger role in critical minerals projects across the continent.

On iron ore, he put the case in terms of scale. Combined output from Guinea, Liberia, Mauritania and Sierra Leone could, over the next 10 years, "easily" make the region a top-three iron ore producer by volume. That is Edochie's assessment rather than a published forecast, and AFC gave no production figures to support it.

What is not yet known

AFC did not name the projects, the countries or the size of the investments it is considering, and there were no uranium-specific details. The timeline is a hope, not a commitment: a deal may be announced within six to twelve months, or it may not. Readers should treat the plan as an intention until a transaction is signed.

Lobito corridor and the minerals race

AFC is also lead developer of the US-backed Lobito corridor, which will combine new and existing rail lines to link copper and cobalt mines in Zambia and the Democratic Republic of Congo with Angola's Atlantic port of Lobito. Together with a possible move into iron ore and uranium, it shows an African institution taking positions along the minerals supply chain.

Critical minerals are a focus of global competition. The United States and other large economies are looking for secure supplies for electric vehicles and renewable energy while reducing reliance on China, which raises the stakes for who finances and owns the projects.

Why it matters for investors and governments

Mwenendo earlier reported on how Tony Elumelu backed a KSh 1.95T ($15B) pipeline of West African infrastructure projects that is to be pitched to financiers including AFC. The two stories point to the same question: whether African institutions can supply more of the capital for projects on their own continent.

As Mwenendo earlier reported, African financial markets reached a decade-high score of 56 out of 100 on the Absa index, a sign that local capital markets are deepening.

Whether that capital flows into mining is the open question for governments in Guinea, Liberia, Mauritania and Sierra Leone, which would need financing partners if the region is to reach the output Edochie describes.