Africa’s Minerals Key to Global Energy Transition, Says IFC Executive

Africa’s vast mineral wealth positions the continent at the heart of the global energy transition.

Unlocking these resources, however, will require sustainable project development, strong governance, and meaningful economic impact, according to Namrata Thapar, Global Head of Metals & Mining at the International Finance Corporation (IFC), in an interview with MITV during the Investing in African Mining Indaba 2026.

Thapar emphasized that Africa remains one of the world’s most important mining investment destinations, but capital will increasingly flow only to projects that demonstrate strong environmental, social, and governance (ESG) performance alongside clear development benefits for host countries.

“Profitability and strong ESG practices go hand in hand,” she said. Responsible mining is no longer merely a compliance requirement; it is now a core investment consideration. Poor ESG performance can lead to operational disruptions through community conflict, environmental disputes, or regulatory interventions. “Proactive mitigation of ESG risks creates long-term shareholder value,” Thapar added, noting that addressing social and environmental risks early protects both project economics and operational continuity.

Africa’s Strategic Role in the Energy Transition
Africa’s mineral resource base gives the continent a critical role in global supply chains for energy transition metals. The region is estimated to hold roughly 30% of the world’s mineral resources, including significant reserves of copper, cobalt, nickel, and lithium—key components for electric vehicles, batteries, and renewable energy systems. “Africa is not peripheral; it is essential to the global energy transition,” Thapar stated.

As global demand for these materials accelerates, Africa’s mining sector is expected to attract growing interest from international investors seeking long-term supply security.

Mining Must Deliver Development Impact
For development finance institutions such as the IFC, mining investments are evaluated not only on financial returns but also on broader economic and social impact. Thapar highlighted that large-scale mining projects can serve as catalysts for development, generating government revenues, employment, export earnings, and infrastructure. Shared infrastructure built around mining operations often delivers benefits far beyond individual projects, creating multiplier effects that drive economic growth across host countries.

Impact Investing on the Rise
Thapar noted a global shift toward investments that combine commercial returns with measurable development outcomes. “Responsible investment will grow as a subset of the overall investment pie,” she said. Institutional investors increasingly seek projects that generate both financial performance and positive social impact, aligning with emerging mining opportunities across Africa.

Governance and Policy Stability Remain Critical
Despite Africa’s geological potential, investor confidence depends on stable regulatory frameworks and predictable policy environments. Governments must maintain transparent mining policies, strengthen institutions, and provide regulatory certainty to attract long-term private capital. This balance enables countries to capture fair value from their resources while remaining competitive investment destinations.

Moving Beyond Raw Mineral Exports
Thapar advocates for greater local value creation in African mining economies. This includes developing downstream industries, stronger domestic supply chains, and skills development linked to mining projects. Local beneficiation ensures mineral wealth drives lasting economic diversification rather than short-term export revenues.

Decarbonising Mining Operations
Thapar also emphasized the importance of reducing the carbon footprint of mining, particularly for metals used in clean energy technologies. IFC-supported initiatives focus on lowering emissions in mining operations, especially in copper and nickel sectors, while ensuring that projects continue to support jobs, communities, and economic growth.

Partnerships to Unlock Capital
Finally, Thapar highlighted the growing importance of collaborative financing models in mining. Blended finance structures involving development finance institutions, commercial banks, governments, and mining companies are increasingly used to de-risk large projects and mobilize private investment. These partnerships are vital in Africa, where infrastructure gaps and financing challenges can otherwise delay project development.