The African mining market is projected to grow from over $508.33 billion in 2024 to $847.63 billion by 2031, with a Compound Annual Growth Rate (CAGR) of 6.60 percent during the forecast period.
The Global Research and Consulting Firm, Verified Market Research, in its projection, said the continent possesses 30 percent of the world’s mineral wealth, including significant reserves of cobalt, platinum-group metals, gold, and rare earth elements, which are vital for the green, industrial, and digital economies.
It disclosed that the demand for these minerals, driven by global industrial needs and emerging market growth, supports Africa’s mining sector and attracts substantial foreign investment from multinational mining companies.
“These factors are driving the growth of the African mining market size to surpass $508.33 billion in 2024 to reach a valuation of $847.63 billion by 2030.”
The report stated that the rising prices of these commodities further incentivise exploration and extraction activities, making mining a critical sector for economic growth and development in many African countries, including Nigeria.
The research firm further stated that improvements in mining technologies and infrastructure are enhancing the efficiency and safety of mining operations, boosting productivity.
“Government initiatives and reforms aimed at creating a more conducive environment for mining investments, such as regulatory changes, tax incentives, and efforts to combat illegal mining activities, also play a crucial role,” it added.
“These efforts, combined with growing regional cooperation and partnerships are enabling the market to grow at a CAGR of 6.60 per cent from 2024 to 2031,” the report said.
The report comes as the Minister of Solid Minerals Development, Dr. Dele Alake, announced that the mining sector’s contribution to Nigeria’s gross domestic product (GDP) has increased to 1.8 percent from less than 0.5 percent in past decade.
This is as the Minister restated the commitment of the Federal Government to on-going reforms, declaring that no amount of threats or blackmail will derail the transformative agenda already yielding results.
His words, “The mining sector was hitherto an all-comers affair where operators got away with flagrant abuse of regulations. When we came in, we made efforts to correct this anomaly and those affected have been employing all forms of tactics, including threats and blackmail to force us to reverse course. I want to assure Nigerians that our resolve is unflinching. We are going ahead to enforce strictly all regulations, no matter whose ox is gored.”
The Minister cited the revocation of mining licenses, reiterating that it is an on-going process, emphasizing that the era in which people defaulted in payment of annual service fees or held in licenses for over 10 years without using it or commencing any form of operation is gone with the wind. He asserted that the “Use it or Lose it” clause in the mining act will be strictly enforced to pave way for serious investors to develop the mining sector.
“Our desire for a very conducive operating environment should not indulge those who are in constant default of the regulations. We won’t tolerate that. I have had to triple my personal security following threats received from some of those whose licenses were revoked but I am undaunted. Our confidence is hinged on the fact that we are waging the battle based on principle, for the sake of our country”, Alake stated.