Africa's mining industry, valued at $508.33 billion in 2024, is projected to grow to $847.63 billion by 2031, representing a 6.6 per cent compound annual growth rate (CAGR), according to a new report by Verified Market Research.
The report highlights that Africa holds 30 per cent of the world's mineral wealth, including vast reserves of cobalt, platinum-group metals, gold, and rare earth elements — all essential to global energy transition, digitalisation, and industrialisation.
It stated that global demand for these minerals continues to attract major investments from multinational firms, sustaining exploration and boosting local economies. Improved mining technologies and supportive government reforms are also driving efficiency and expanding production across the continent.
According to the report, initiatives such as regulatory reforms, tax incentives, and measures against illegal mining are creating a more conducive environment for private investment. Regional cooperation and new infrastructure projects are further strengthening growth prospects across key mining markets.
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In Nigeria, the sector's contribution to GDP has grown from less than 0.5 per cent to about 1.8 per cent over the past decade. Encouraged by this progress, Minister of Solid Minerals Development, Dr. Dele Alake, said the government is targeting a three per cent GDP contribution in the coming years through continued reforms and innovation.
Speaking ahead of the 10th Nigeria Mining Week slated for October 13–15, 2025, in Abuja, Alake noted that initiatives such as geological mapping, digital licensing systems, and the creation of mining marshals are transforming the sector. "This edition of the Nigeria Mining Week reflects our journey from obscurity to opportunity," he said.
However, the report warned that political instability, regulatory inconsistency, and corruption remain key challenges undermining investment confidence across several African markets. It added that shifting mining laws and opaque approval processes can increase operational risks and costs for investors.
Despite these hurdles, the outlook remains strong, with Africa's mineral resources positioned as a cornerstone for sustainable growth, industrial expansion, and economic diversification across the continent.
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