U.S. DFC to expand equity investments in African critical minerals

The U.S. International Development Finance Corporation (DFC) plans to expand its use of direct equity investments in strategically important projects, specifically targeting the critical minerals sector in Africa. This shift aims to increase Washington’s financial stake in global supply chains, helping to reduce reliance on China’s dominance in the processing of materials like cobalt, lithium, and rare earth elements.

Vibhuti Jain, the DFC’s regional director for Africa, stated that equity investments may be used alongside or instead of traditional lending and insurance when projects hold strategic importance. While lending and credit guarantees currently comprise a larger share of the agency’s activity, the DFC intends to grow its equity portfolio over time.

The agency has already committed more than $14 billion to investments across Africa, with over $3 billion directed toward critical minerals and related initiatives. Potential areas for further investment include rare earth developments and graphite mining in Mozambique.