Critical minerals investment in Africa

Investment activity in the African critical minerals sector continues to evolve through private market movements and expanded international development finance.

On the Nigerian Exchange, Critical Minerals Financing Corporation Plc (CMFC), formerly Deap Capital Management and Trust Plc, experienced a significant stock rally. Share prices rose approximately 59.8 percent over a five-day period, climbing from N2.04 to N3.26. This surge occurred despite recent financial statements showing a loss position and followed an expansion of the company’s issued share capital, which involved converting N1.807 billion in debt to equity.

On the international front, the U.S. International Development Finance Corporation (DFC) is scaling its capacity to secure global supply chains. The DFC has increased its maximum worldwide investment capacity to $205 billion, with the goal of deploying between $25 billion and $35 billion annually next year. The agency aims to use government funds to attract private investors, targeting a mobilization of $3 to $5 of private investment for every dollar committed.

The DFC is specifically targeting the critical minerals sector to reduce reliance on Chinese processing of materials such as cobalt, lithium, and rare earth elements. While the agency has already directed over $3 billion toward critical minerals and related initiatives in Africa, it is also expanding its use of direct equity investments. Recent activity includes the approval of up to $414.2 million in debt financing for the Dasa uranium project in Niger, though analysts note that the stability of such investments remains tied to local security and governance.