I

t was an aspirational year for African infrastructure and investment. Trade is increasingly seen as the anchor to alleviating poverty through cross-border economic exchange, especially in the mining sector, during this era of the Fourth Industrial Revolution.  

In the first decade after the African independence movements of the 1960s, mining and natural resource exploitation damaged the environment, provided limited, if any, prosperity to the people, and often triggered violent conflict across the continent. Today, the sector continues to be a major source of illicit financial flows from Africa and has been spotlighted for human rights violations, child labor, and unsafe working conditions. In many countries, legal and illegal mining are draining resources without providing needed revenues. The statistics suggest that multinational mining companies have grown 67% per year during the last two decades, but the producing countries have experienced declining revenue performance. 

But hope remains that reforms to the sector, new investment, and improved governance structures will transform mining for the technology revolution and the green economy, leading to important revenue for African economic growth. A key example of this is the celebrated US and European Union investment in the Lobito Corridor that provides infrastructure linking the Port of Lobito in Angola to critical minerals in Zambia. This regional infrastructure investment opens a “growth alley,” enabling value-added elements, like refinement, of the mining value chain.  

The mining sector is responding to these new initiatives and buyer demands. At the 30th anniversary of the African Mining Indaba, the sector articulated a determination for fair play in the looming energy transition. Mining entrepreneurs who gathered in Cairo in November 2024 for the Congress of Africa’s Mineral Resources Development showed greater commitment to developing value chains across borders. After years of deliberating on issues around land rights, regulatory environments, and transparency issues, in the 2024 conference, there was a more focused conversation on value chains, environmental factors, and locally-based value addition. 

Additionally, African investment partners are mobilizing to ensure growth contributes to domestic development. Sovereign wealth funds are a critical mechanism to achieving this goal. Botswana continues to provide leadership in prioritizing long-term growth, with its Pula Fund investing in diamond mining and export revenues with an eye towards future growth.  

Still, the paradoxes persist. How can an industry that has created so much harm be the engine of good? Africa’s infrastructure deficit remains huge, but examples exist (such as in Australia) where coordinated efforts and private–public partnerships can lead to important infrastructure development that stimulates much-needed revenue, jobs, and growth. These efforts will only strengthen by ensuring they take advantage of regional cooperation and ongoing pan-African trade initiatives such as the African Continental Free Trade Agreement.