AFC to launch mineral exploration fund

Africa Finance Corporation (AFC) plans to create an investment company focused on funding mineral exploration in Africa, with the goal of launching it within the next year. The announcement was made during African Mining Week in Cape Town by Franklin Edochie, head of mining and metals at the AFC, which is based in Lagos, Nigeria.

Exploration funding remains low

According to S&P Global Market Intelligence, only 1.44 billion dollars were invested in African mineral exploration in 2025, which is an 11 percent increase from the previous year but still only 12 percent of the global total. Edochie emphasized that without increased investment in exploration, Africa risks losing control over the direction of its natural resources.

Limited geological data in DRC

In the Democratic Republic of Congo, only 19 percent of the country has been mapped using high-precision geological methods, according to the Centre d'expertise, d'évaluation et de certification (CEEC). The AFC's new initiative will consider investments in iron and uranium, in addition to its current focus on gold, bauxite, copper, and manganese.

AFC's past involvement

The AFC has previously funded mining projects, including a 330 million dollar loan for the Baomahun gold project in Sierra Leone. The new investment company is expected to announce initial funding within six to twelve months, though details on its budget, structure, and targeted countries remain unclear.

Risks and local processing

It is still uncertain how the new structure will manage the high risks associated with mineral exploration. Additionally, it remains to be seen whether new discoveries will lead to more local processing of minerals, rather than just the extraction of raw materials.