Critical Minerals Push in Africa Spurs New Development Finance Tactics and Deal-Making Training

Africa’s accelerating critical minerals and mining push is changing more than global supply chains—it is reshaping how development finance institutions operate and how African governments prepare for complex negotiations. As demand for resources linked to copper, lithium and rare earths rises, major lenders are expanding their presence, adjusting investment strategies and rethinking deal structures to manage risks that have historically deterred capital.

EBRD’s rapid entry into sub-Saharan Africa

A prominent example is the European Bank for Reconstruction and Development (EBRD), which until recently had no operations in sub-Saharan Africa. That has shifted quickly: the bank now has nearly 100 staff across five African offices and has signed approximately €400 million in investments, one of the fastest geographic expansions in its history.

The EBRD’s expansion into Africa became possible after Kenya, Nigeria, Senegal, Côte d’Ivoire and Benin joined as shareholders. Since entering the region, it has diversified its portfolio beyond any single commodity theme, moving into electricity transmission infrastructure, trade finance systems, agribusiness development and early-stage mining and natural resources projects. Deals in Kenya and Senegal are expected to be finalized soon.

Mining strategy broadens beyond a narrow critical-minerals focus

While global attention often concentrates on critical minerals, EBRD officials describe a wider approach to mining and natural resources. The bank’s natural resources division—previously concentrated in Central Asia—is shifting toward Africa as geological potential and investment demand rise.

JUMP program targets early-stage mining risk

One of EBRD’s most notable tools is its JUMP program, designed to support junior mining projects at an early stage—before deposits are fully proven or commercially developed. The program enables the bank to take equity exploration risk, a type of exposure that many development finance institutions traditionally avoid. In Côte d’Ivoire, current pipeline projects include both critical minerals and precious metals supported by a mix of international and regional sponsors, signaling a move toward upstream mining finance rather than focusing only on infrastructure or downstream processing.

Local-currency financing becomes a central battleground

Beyond project selection, currency mismatch remains a structural challenge across African investment markets. Many companies borrow in U.S. dollars while earning revenue in local currencies, leaving them exposed to exchange-rate volatility. EBRD says it is expanding its strategy to address this risk directly through plans that include placing treasury staff in African markets and working more closely with central banks to increase local-currency lending capacity—an effort aimed at stabilizing financing conditions and reducing systemic vulnerability.

BII avoids direct competition while funding enabling infrastructure

Not all development capital is chasing mining exposure directly. The UK’s British International Investment (BII) is deliberately avoiding direct competition in financing related to critical minerals. Instead of funding mines themselves, BII focuses on infrastructure and enabling sectors that support the broader mining economy.

Its investments include the Port of Banana project in partnership with DP World; exploration of the Lobito Corridor; and funding for local service providers supporting mining operations such as transport, catering, logistics and industrial supplies. BII’s updated strategy also requires at least 25% of its portfolio be allocated to frontier and least-developed markets where private capital remains scarce despite significant infrastructure and industrial needs.

Geopolitical shocks shift urgency toward energy security

Global instability is also influencing investment priorities. Rising geopolitical tensions—including conflicts affecting energy markets—are accelerating interest in alternative technologies and supply chains. In Ethiopia, BII has invested in electric mobility company Dodai; what began as a long-term sustainability investment is increasingly being viewed as a strategic energy security play amid fuel shortages and price volatility.

Sankoree Institute trains negotiators for high-stakes deals

The changes are not limited to capital flows. A parallel effort is underway to strengthen how African governments negotiate major agreements. Former Nigerian President Olusegun Obasanjo and former Liberian President Ellen Johnson Sirleaf are among leaders behind the newly launched Sankoree Institute of Global Negotiators (SIGN), which aims to train African officials on negotiating mining concessions, sovereign debt restructuring, climate finance agreements and pharmaceutical procurement contracts.

The initiative seeks to improve Africa’s bargaining position where outcomes have often been shaped by asymmetries of expertise and leverage. “We can’t just be people who are waiting to be ripped off,” said Rwandan President Paul Kagame.

Taken together, these moves suggest that Africa’s resource boom is driving a broader retooling of development finance—from where lenders deploy capital to how they manage exploration risk, currency exposure and enabling-sector dependencies—while also pushing governments toward stronger negotiating capabilities for deals that can define long-term economic outcomes.