A significant surge in infrastructure investment is set to unleash a wealth of critical mineral opportunities across the Southern African Development Community, according to Duncan Bonnett, a partner at Africa House. Key minerals such as copper, cobalt, lithium, graphite, manganese, and platinum are ripe for exploration and development, and they stretch across a vast region, from Namibia to Tanzania, encompassing Botswana, Zambia, Zimbabwe, South Africa and the Democratic Republic of Congo (DRC).“Already we are seeing increased investment announcements into infrastructure,” said Bonnett, referring to the G7 leaders' pledge to raise $600 billion in private and public funds over five years to finance necessary infrastructure in developing countries. “Many consider the move to investing in Africa’s infrastructure and development as a direct response to China’s belt and road initiative which has been ongoing for some time. This is being seen by many as the West’s intent to develop more Atlantic facing infrastructure.”EU’s investment plansThe European Union (EU) has also indicated its intent to invest in infrastructure, and more recently signed three Memoranda of Understanding with partners in the DRC, Angola and Zambia to develop critical raw materials value chains and boost transport connectivity.This includes the development of the Lobito Corridor, which will connect the southern part of the DRC and the north-western part of Zambia to regional and global trade markets via the Port of Lobito in Angola.According to EU President Ursula von der Leyen, this corridor is a game-changer in southern Africa and the goal is to accelerate the development of the corridor. “Cooperation will focus on transport infrastructure investments, measures to facilitate trade, economic development and transit, and support to related sectors to fuel inclusive and sustainable economic growth and capital investment in the three African countries in the longer term.”Bonnett said once fully operational, the corridor would enhance export possibilities for Zambia, Angola and the DRC, boost the circulation of goods, and promote the mobility of citizens. “The corridor will provide a seamless f low of cargo from these African markets to the US and Europe. It is an important development that has the potential to become the world’s most important critical minerals railway.”Mozambique enhancing portsHe mentioned that the interest and investment in infrastructure were not limited to Angola and the DRC, but extended across the entire region. “There's a noticeable increase in investments in transportation and logistics throughout southern Africa. Mozambique is working on upgrading and enhancing its ports, and similar developments are happening in Namibia, Botswana, Zambia, and Zimbabwe. Additionally, there's a significant $850-million route development project connecting Zambia and the DRC to Dar es Salaam in Tanzania. What's noteworthy is that most of these projects and plans are oriented from east to west rather than north to south. This trend isn't favourable for South Africa, as it diminishes its role as a primary supplier to the region as ports, railways, and roads in the region improve their infrastructure.Shift away from state controlHe also pointed out another development, which is the shift away from state-controlled infrastructure in the region. For instance, Angola has already granted concessions for the Luanda multi-terminal to DP World, which will also take over the Port of Lobito operations. “In the rail sector, there are highly skilled rail experts involved in the concession. Mozambique, too, has players like DP World and Cornelder in the port industry. Countries in the region are swiftly and vigorously taking steps to reduce their reliance on South Africa and are introducing expertise and efficiency into their logistics sector. They are actively involving the private sector and decreasing state involvement in the management of ports and railways.”
