AFC backs African mining sector

The Africa Finance Corporation (AFC), a multilateral bank based in Nigeria, has reaffirmed its support for Africa’s mining industry during the Africa Mining Week in Cape Town on October 14. The organization announced plans to establish an investment company focused on mineral exploration to address the region's growing funding gap.

New investment aims to boost mineral reserves

The initiative, led by Franklin Edochie, deputy director and head of the Metals and Mines department at the AFC, is expected to launch within a year. The new investment vehicle seeks to increase Africa’s mineral reserves, boost production, and strengthen the continent’s control over its mining resources.

Africa's mineral wealth remains largely untapped

According to the AFC’s Compendium of Africa's Strategic Minerals, published in February 2026, the region holds 295 billion USD in mineral wealth, with 86 billion USD still unexploited. The new initiative will complement the AFC’s existing investments, which include over one billion USD in precious metals and critical minerals since 2014.

AFC partners with Nigeria’s mining fund

In March 2026, the AFC signed a memorandum of understanding with the Nigeria Solid Minerals Development Fund (SMDF). The partnership includes exploring financing for a 1.3 billion USD alumina project and launching a geoscientific mapping program to identify potential mineral resources.

AFC’s shareholders include public and private entities

The AFC has about forty shareholders, with the Central Bank of Nigeria holding 38.5% of the capital as of March 31, 2026. Other shareholders include private banks like Access Bank and United Bank for Africa (UBA), as well as non-African institutions such as Türk Eximbank.

AFC finances major mining projects

The AFC has supported several mining projects, including the Segilola gold mine in Nigeria, which received 86 million USD in loans and pre-financing agreements. Thor Explorations, the Canadian company operating the mine, reported loan repayments and interest charges in its 2024 financial statements, while the AFC holds a 15% stake in the company.

New investment targets early-stage projects

The creation of the new investment vehicle is designed to support the AFC’s mining activities at an earlier stage in the mining process. By focusing on exploration, the AFC aims to support the development of new projects and gain an early advantage in their growth.

AFC’s success depends on value creation

Whether the AFC can successfully implement this new initiative and create value for Africa’s mining industry beyond its own financial returns remains to be seen. The project’s impact on the continent’s mineral sector will depend on its execution and long-term outcomes.