Could you comment on the recent investments by AFC in the mining space?

In the critical minerals space, AFC invested US$150 million in the form of senior debt for the phase 3 expansion of the Kamoa-Kakula copper complex—a world-class, high-grade, low carbon-intensive underground copper mine. The expansion includes the construction of Africa’s largest copper smelter, with a capacity of 500,000 t/y of 99% pure copper anodes.

In the precious metals space, AFC acted as an anchor investor in FG Gold’s Baomahun gold mine, which, upon reaching production, will be the largest commercial gold mine in Sierra Leone, which will produce  185,000 oz/y of gold in its initial years of operation. This project represents one of the largest investments in Sierra Leone in the last decade and is expected to contribute almost 10% to the country’s GDP.

Both of these projects are flagships in their respective countries and will have a significant impact on their economies—precisely the kind of transformative projects that AFC targets. 

Is there enough liquidity and appetite in the markets to finance mining projects?

Despite record performances in metals and mining assets, as well as rising commodity prices globally, junior miners are still facing significant challenges in raising equity capital for exploration, development, or construction. This issue is not unique to Africa, but is also evident in other prominent mining jurisdictions, such as Canada and Australia. This financial challenge in the junior mining sector could have long-term implications for the supply chain of key minerals essential to global decarbonization efforts. 

That said, strategic players from far east (China in particular) are stepping in strongly with the necessary equity to secure offtake agreements, particularly in critical mineral projects. Meanwhile, the AFC and other multilateral development banks (MDBs) are also stepping up to provide equity capital, but typically for smaller-scale projects in the US$200 to US$300 million range. 

On the debt side, the appetite remains robust from institutions like AFC and other MDBs, especially in sectors where commodity prices have remained stable and where hedging solutions are available. However, political risk remains a key consideration when evaluating these opportunities. Despite this, we see strong growth potential in our debt, mezzanine, and quasi-equity portfolios, with increasing demand for financing across various sectors. 

How can the AFC support the energy transition in Africa and what do you think will be role of carbon taxation frameworks in this sense?

AFC is uniquely positioned to support the energy transition in Africa by leveraging its expertise in infrastructure financing, its strong network of strategic partners, and its focus on critical sectors like renewable energy, power generation, and resource beneficiation. By continuing to invest in sustainable mining and resource beneficiation, AFC can help ensure that Africa plays a key role in the global energy transition. AFC also supports projects that promote processing and beneficiation of critical resources in Africa, rather than exporting raw materials. 

Carbon taxation frameworks, on the other hand, can incentivize the shift to cleaner energy, generate revenue for green investments, and help African countries align with global climate goals. Together, these strategies can help Africa meet its energy needs while advancing the global fight against climate change.

What are the main priorities at AFC moving forward?

One of AFC’s key areas of focus in the future is establishing platforms in the critical minerals space. We are also actively pursuing single assets that meet global critical mineral needs and supply requirements. Our approach prioritizes partnerships that offer opportunities for added-value through beneficiation, ensuring that resources are processed and refined on the continent to maximize economic benefits.

In addition to critical minerals, we are targeting strategic precious metal assets that are economically significant to the portfolios of our member countries. These assets represent substantial contributions to local economies, and AFC’s investments aim to maximize their positive impact.

Sustainability and development impact is central to our strategy. We prioritize projects that incorporate renewable energy sources, minimize environmental impact, and have a positive social footprint. We are especially focused on ensuring that our projects create tangible benefits for local communities, including social development programs and infrastructure that supports long-term growth for project-affected areas.

These key areas of focus—critical minerals, beneficiation, strategic assets, and sustainability—will guide AFC’s growth as we continue to support development across the region.