The President/CEO of the Regional Maritime Development Bank (RMDB), Adeniran Aderogba, has called for African nations to confront the structural and financial barriers that hinder the continent’s mining sector. Speaking during a high-level panel discussion on “Mobilising Domestic Capital for Africa’s Mining Sector” at the African Development Bank (AfDB) Annual Meetings in Abidjan, Côte d’Ivoire, Aderogba highlighted the pressing need for change.
He painted a sobering picture of a region rich in mineral resources yet hindered by systemic weaknesses that obstruct meaningful development and value creation. “Africa’s mineral wealth is not in question — our challenge is transforming potential into productivity,” Aderogba stated. He outlined four persistent constraints affecting the sector’s growth: a crippling shortage of early-stage capital, the absence of quality geological data, weak development activity, and a chronic lack of integrated infrastructure. He emphasized that these issues are foundational deficiencies that continue to blunt Africa’s competitiveness and discourage long-term investment.
Despite increasing interest from financial institutions in value-added ventures like processing and manufacturing, Aderogba lamented that the upstream segment—where mining projects are initiated and developed—“remains largely unfunded due to its perceived risk.” He pointed out that local financial institutions are often hesitant to support early-stage exploration due to uncertain returns and limited risk mitigation mechanisms.
To bridge the financing gap, Aderogba proposed that African governments and central banks take a more assertive role in creating a viable investment environment by deploying credit enhancement tools and fiscal incentives. He outlined a strategic suite of financial innovations to facilitate investment, including the introduction of mining bonds, mineral royalty securitisation, and blended finance models that combine public and private funds. Additionally, he highlighted the importance of enhancing project preparation capacity and the role of public-private partnerships in realizing the continent’s mining potential.
“Africa must not rely solely on foreign capital. We need to build a resilient domestic financial architecture that supports the full mining value chain—from exploration to beneficiation and beyond,” he asserted. He urged finance ministries to provide fiscal incentives, while central banks could implement investment-friendly monetary policies and guarantee frameworks.
Aderogba’s comments were particularly timely given the global momentum toward energy transition, which has heightened the demand for minerals such as copper, lithium, nickel, cobalt, graphite, and rare earth elements. He referenced projections indicating that the global market value for these critical minerals is expected to surge from US$325 billion in 2023 to US$770 billion by 2040, largely driven by copper’s essential role in electrification technologies.
“Africa is central to this transition,” he said, pointing out that the continent holds two-thirds of global cobalt reserves, 30 percent of lithium, 20 percent of graphite, and over 30 percent of manganese. He cited Guinea’s vast bauxite reserves, Gabon’s dominance in manganese production, and the Democratic Republic of Congo’s 70 percent share of global cobalt supply as critical pillars of opportunity.
However, Aderogba cautioned that unless Africa evolves from being a raw material exporter to a hub of industrial transformation, it risks repeating historical patterns of resource dependency. “Extracting minerals is not enough. The real value lies in processing them locally, creating industries, jobs, and self-sustaining economies,” he emphasized.
He added a crucial maritime dimension to his argument, underscoring the role of Africa’s seaborne infrastructure in realizing the continent’s economic potential. “To facilitate intra-African trade, minerals must benefit from major value addition, giving rise to rapid industrialisation,” Aderogba said. He envisions that goods produced from this industrialisation—vehicles, batteries, components, and machinery—can be traded across African borders and efficiently transported through major maritime channels.
This integrated vision, he explained, would not only strengthen Africa’s internal markets but also reduce dependence on external trade corridors and pricing systems. Aderogba reiterated RMDB’s broader mission to enhance the maritime and logistical connectivity of Africa’s coastal and landlocked nations, transforming mineral wealth into tangible, tradable value across the continent.
While he welcomed the growing international interest in Africa’s mining sector, Aderogba cautioned that global partnerships must contribute to local capacity building and value chain development. “Africa must act with unity and urgency. Mobilising domestic capital is not just an economic imperative — it is a sovereign necessity,” he declared. “Let us rise to meet the moment and build an Africa that thrives on the strength of its resources, connected by land, by industry, and by sea.”
Finally, Aderogba noted that in an era defined by climate action and technological upheaval, Africa’s minerals could become its passport to prosperity—“if the continent can summon the collective will to finance its future.”