Mr. Denys Denya, Senior Executive Vice President of the Afreximbank Group, has charged Africans to take ownership of the continent's resources, generate employment, and establish industries that will ensure prosperity for future generations. He made these remarks during his keynote address at the African Mining Indaba 2025, held in Cape Town, South Africa.

In 2023, the global mining industry generated approximately US$1.7 trillion in revenue. Yet, Africa's share of this wealth is estimated to be between four percent and twenty percent of the total value of the continent's minerals.

In many African countries, mining typically ends with the extraction of natural resources, mainly due to challenges in local processing and limited development of downstream industries. As a result, raw materials are often sold at a significantly lower price compared to their value in semi-finished or finished forms. According to Mr. Denya, this situation largely contributes to lost economic opportunities and a continued reliance on external markets for refined products, along with the associated issues that arise from this dependency.

Mr. Denya emphasized the significance of the African Continental Free Trade Area (AfCFTA) in developing intra-African mineral value chains. This initiative can assist miners by granting them access to specialized services, equipment, and expertise. AfCFTA is also crucial for enhancing cross-border collaboration. He emphasized that attracting investment for mining infrastructure, facilitating technology transfer, and promoting skills development are crucial for creating skilled jobs for the youth. This approach will help reduce reliance on unstable global markets while enhancing intra-African trade.

By reducing tariffs and non-tariff barriers, AfCFTA aims to increase trade among African nations, which will benefit miners by opening up new markets and customer bases. Additionally, AfCFTA seeks to foster local content development in the mining sector, creating opportunities for local businesses to supply goods and services to the industry.

Mr Denya stated that the establishment of a US$10 billion AfCFTA Adjustment Fund would provide essential financial support to countries and businesses, including those in the mining sector, as they transition to the new trade area. He also noted that the Bank’s efforts to harmonize standards and implement the Africa Collaborative Transit Guarantee Scheme would facilitate the movement of minerals and mining equipment across borders, helping to reduce logistical blocks.

Over the past three years, Afreximbank has approved more than $1 billion in support of mining and mineral sector projects across the continent. This funding includes the development and construction of a bauxite processing plant in Guinea, the expansion of a manganese processing plant in Gabon, and working capital financing for a diamond company in Botswana. Additionally, the Bank is supporting major projects such as a titanium dioxide pigment plant in South Africa, a petrochemical fertilizer plant in Angola, and a feasibility study for the development of a limestone processing plant in Malawi.

The effective management of Africa’s mineral resources can lead to significant advancements in economic, industrial, and infrastructural development throughout the continent.

Economic Growth: The extraction and processing of mineral resources can significantly contribute to the economies of African nations. By creating jobs, generating income, and stimulating various economic activities, these resources can lead to rapid economic growth when managed properly.

Industrial Development: Mineral resources are essential for industrial activities. They provide the raw materials necessary for manufacturing a wide range of products, from household goods to automobiles, electronics, and construction materials.

Infrastructure Development: The construction of infrastructure, such as roads, bridges, and buildings, relies heavily on mineral resources. Essential building materials, including cement, steel, and glass, are derived from minerals. Access to these resources is crucial for the development of a country’s infrastructure, and countries can also generate revenue from the sale of these materials.

Energy Production: Mineral resources play a vital role in the energy sector. Minerals like uranium and thorium are utilized in nuclear power plants, while coal serves as a significant source of electricity in several countries.

Afreximbank has been a strong supporter of AfCFTA. For 30 years, the Bank has deployed innovative structures to provide financing solutions that enhance the transformation of Africa’s trade, accelerating both industrialization and intra-regional trade. Mr. Denys Denya asserts that Africans must ensure that their mineral wealth drives economic growth rather than perpetuating resource dependency. He assured that Afreximbank is committed to supporting Africa’s mining sector in this endeavour.

REFERENCE

Information from https://www.afreximbank.com/afreximbank-challenges-africas-miners-to-take-bold-steps-to-own-the-continents-resources/and https://www.afsic.net/mineral-resources-key-to-economic-growth/ was used in this story.