Africa’s mineral-rich economies could capture more value from copper, iron ore and other critical minerals under a World Bank initiative designed to shift mining activity beyond raw material exports and into local manufacturing.

The programme puts industrial development, infrastructure and private investment at the centre of efforts to turn natural resources into broader economic gains.

The World Bank Group plans to mobilise $19 billion through its own financing and private capital for metals and minerals projects between fiscal years 2026 and 2030.

President Ajay Banga has also set a target of increasing the institution’s activity in critical minerals fivefold over five years, signalling a stronger push to support industries that process minerals closer to where they are mined.

Four African countries are among the first eight participants in the initiative, announced in Bangkok on October 16. Zambia, Mauritania and Malawi have outlined different priorities, from manufacturing copper cables to producing higher-value iron ore products and expanding local businesses around mining operations.

The initiative’s impact, however, will depend on whether financing, electricity, infrastructure and investor commitments match those ambitions.

Zambia targets copper manufacturing

Zambia, Africa’s second-largest copper producer, wants to expand production of copper wires, cables, transformers and electrical distribution panels for regional markets, with manufacturing capacity targeted to increase by 2029.

However, a 2025 World Bank study found that Zambian wire and cable manufacturers operated at only 30% to 50% of capacity. Expensive copper supplies, limited financing and unreliable electricity remain obstacles.

The government plans to improve these conditions, while the World Bank will help mobilise financial partners and strengthen suppliers’ skills and access to credit. Zambia has also requested an $80 million mining-sector operation that remains under preparation.

Mauritania pursues higher-value iron ore

Mauritania plans to produce 10 million tonnes of iron ore pellets annually by 2035 before developing a hot-briquetted direct-reduced iron facility in 2040. The strategy centres on the National Industrial and Mining Company (SNIM), whose iron ore operations accounted for 9% of GDP and 37% of export value in 2023.

The potential returns are significant. Brazilian producer Vale sold iron ore pellets for an average of $134 per tonne in 2025, compared with $91.60 for iron ore fines. However, higher prices must offset additional processing, energy, water and logistics costs.

The World Bank’s DREAM project, approved in 2025, supports energy and mining development and skills. In July 2026, the International Finance Corporation signed an agreement with SNIM to prepare projects and mobilise financing. The new Compact consolidates these efforts but does not announce fresh funding for processing plants.

Malawi seeks more local spending

Mining contributes less than 1% of Malawi’s GDP, but projects involving graphite, rutile, rare earths and niobium offer opportunities to expand the sector. The government wants to develop processing activities and businesses supplying mining companies. It plans to establish requirements for treating minerals before export by 2027.

A World Bank project worth about $70 million, still under preparation, would improve geological data, permit management and government negotiating capacity. Malawi also aims to increase the local share of selected mining expenditures, including goods and services, from less than 5% to 15% by 2030.

Investment remains the key test

Banga’s strategy addresses constrained government budgets and growing employment needs. He said 1.2 billion young people are expected to enter the labour market over the next 10 to 15 years, against an estimated 400 million jobs.

The World Bank has identified 20 potential partner countries, but the full list and geographical allocation of funding remain unclear. The initiative’s success will depend on actual investment commitments, functioning processing facilities and stronger local supply chains, rather than announced roadmaps alone.