Af rica will remain a priority for the United States as the demand for critical minerals increases, according to Reta Jo Lewis, president and chair of the Export-Import Bank of the United States (Exim).This follows an announcement by the US International Development Finance Corporation (DFC) of additional financing for the Lobito corridor, where the Africa Finance Corporation (AFC) is leading the second phase of the project. Pending congressional review, a loan of approximately $250 million to the AFC will mark Africa as the DFC’s largest regional portfolio, with over $11 billion in financing across the continent.Lewis noted also that Exim efforts were being made to bolster funding for African projects, following a directive from the American Congress to increase available financing in sub-Saharan Africa.“The demand for critical minerals is expected to increase,” she said. “Project risk in Africa remains high, making it difficult to bring new mines on line. Having support from the outset of a project helps significantly. Exim is intent on providing viable financing for mining projects, particularly in Africa where we have been tasked by the US government to grow our footprint.”Given the global demand for clean energy batteries, electric vehicles, and other advanced electronics reliant on minerals extracted from Africa, it's imperative for African countries to collaborate with financing institutions capable of turning projects into reality.Project financing has long been a significant hurdle on the continent.Ismael Diakite, chief representative of the SMB-Winning Consortium in Guinea, agreed African mining was dependent on unlocking the necessary funding. “Realising the potential that mining holds on this continent necessitates significant investments in infrastructure. Governments cannot undertake this task alone; they require partners to leverage mining as the transformative force it can become.”Speaking in Cape Town recently, former US Ambassador Peter Pham highlighted that the lack of investment in infrastructure, energy, and human capital continued to be the primary obstacles hindering the development of Africa’s mining sector. He showcased that the progress made on the Lobito corridor served as an illustration of what could be achieved when not only one country but an entire region collaborated with the private sector to realise a shared vision. “It is through leveraging the collective strengths of collaboration that tangible benefits are delivered, and projects successfully take f light,” he said.
