For decades, Africa has been celebrated as a geological powerhouse, endowed with vast deposits of gold, lithium, rare earth metals, iron ore and other strategic minerals that are increasingly vital to the global energy transition. But despite this immense resource wealth, the continent continues to attract only a fraction of the investment needed to unlock its full mining potential, while much of the value created from its minerals is realised elsewhere through processing and manufacturing.
As global competition for critical minerals intensifies, mining sector industry leaders are increasingly asking a different question: What will it take for Africa to move from being merely resource-rich to becoming investment-ready and industrially competitive?
At the 2026 African Natural Resources and Energy Investment Summit (AFNIS), the Solid Minerals Development Fund (SMDF) said the answer lies not simply in discovering more minerals, but in preparing bankable projects, de-risking early-stage investments and building integrated mineral value chains capable of attracting long-term private capital and driving sustainable industrial development.
Executive Secretary, SMDF, Hajiya Fatima Shinkafi who was represnted by her Technical Advisor, Mr. Abdulmajeed Amussah at a panel discussion on Access to Finance, during the second day of the African Natural Resources and Energy Investment Summit (AFNIS) 2026, said Africa must focus on building investment-ready mining projects capable of attracting long-term institutional capital.
Speaking during the session, the Executive Secretary noted that investors do not finance mineral occurrences but bankable projects backed by credible geological data, internationally recognised reporting standards, robust technical studies, sound environmental, social and governance (ESG) practices, infrastructure planning, regulatory clarity and clearly defined commercial pathways.
According to Shinkafi, the SMDF is addressing the financing gap through project preparation, technical assistance, investment facilitation and capacity building while expanding collaboration with private-sector partners, technical advisory platforms and specialised research and laboratory institutions.
She explained that the partnerships are designed to improve project quality, accelerate investment readiness and strengthen investor confidence through advanced mineral testing and analytical capabilities.
“Capital follows confidence, and confidence begins with preparation,” she said.
On the role of development finance institutions (DFIs) and government-backed funds, Shinkafi argued that their primary responsibility is not t
o replace private investment, but to catalyse it by reducing the risks associated with early-stage mining projects.
She noted that the largest financing gap exists before commercial investors are willing to participate, making it essential for development finance institutions to provide catalytic capital that reduces uncertainty, enhances project credibility and creates conditions for larger private investments.
According to her, de-risking extends beyond financial support to building an ecosystem where governments, development partners and private-sector experts collaborate to improve project quality, strengthen governance, appropriately share risks and move projects from exploration to investment readiness.
“When that foundation is in place, institutional investors— including pension funds, sovereign wealth funds, commercial lenders and global mining companies—are far more willing to commit long-term capital,” she said.
Shinkafi further added that the effectiveness of public finance should be measured not by the amount of money deployed but by the volume of private capital mobilised.
Addressing Africa’s position in the global race for critical minerals, the Executive Secretary said the continent must move beyond exporting raw minerals to building industrial capacity through local processing, beneficiation and manufacturing.
“The global competition for critical minerals is no longer simply about securing resources; it is about securing industrial capability,” she stated.
She maintained that Africa’s mining strategy should evolve from a “pit-to-port” model to a “pit-to-product” approach by integrating downstream processing, technology, infrastructure, skills development, market access and long-term industrial policy into mining project design.
According to Shinkafi, institutions such as SMDF have strategic roles to play in supporting commercially viable mining projects that also stimulate industrial development and broader value-chain participation.
She said strengthening technical capabilities, investment ecosystems and strategic partnerships would help attract long-term capital capable of supporting not only mining operations but also industries built around mineral resources.
“The future of African mining will not be defined only by what we extract, but by the value we create around our resources,” she added.
