Harnessing Africa’s rare earth potential: Standard Bank’s blueprint for industrial transformation

By championing beneficiation, investing in strategic infrastructure, and leveraging financial innovation, Africa can embed itself higher in global supply chains, create skilled jobs, and build resilience against fluctuation in commodities prices.

From Pit-to-Port to value creation

Africa must move beyond the traditional pit to port approach and start creating real value within its borders. When we co-develop markets, rail, renewables, processing, and supply-chain traceability, the value grows and accrues locally. That’s how African miners, governments, and communities win together. Zimbabwe for instance is Africa’s top producer of Lithium and holds the third largest platinum reserves globally. The Zimbabwe government is leveraging these resources by encouraging companies to set up processing plants locally rather than exporting raw ore. This shift is not just economic, it is strategic. Beneficiation creates skilled jobs, strengthens governance, and positions Africa as a global hub for green technology.

The global context

Both the World Bank and World Economic Forum warn that without local value addition, Africa risks missing its chance to lead in green technology. Industrial policies and strategic partnerships are essential for inclusive growth. The World Bank calls for fiscal frameworks and infrastructure investment to enable beneficiation, while the WEF notes that Africa’s demographic dividend and resource wealth can power a new industrial era—if value addition becomes the standard practice.

Driving this vision one step at a time:

1. Financing Beneficiation and Mineral Value Chains

Standard Bank plays a pivotal role in financing projects that expand the critical minerals value chain beyond raw extraction. With a presence in 21 African countries, including South Africa, Zimbabwe, the Democratic Republic of Congo, and Zambia-the bank is deeply engaged in advancing regional industrialization. Its strong focus on copper and cobalt processing in Zambia and the DRC aligns with the Zambia–DRC Memorandum of Understanding (MOU), supporting initiatives to establish processing plants in the Copperbelt. These facilities enable local value addition for minerals that are essential components in electric vehicle batteries and renewable energy technologies. A notable case study in Zambia highlights Standard Bank’s facilitation of financing for a midstream processing facility designed to produce battery-grade cobalt sulphate. This investment not only generates employment opportunities but also strengthens Zambia’s position as a competitive player in the global EV supply chain, underscoring the bank’s commitment to sustainable development and regional industrialization.

2. Mobilising Sustainable Finance

The bank has also expanded its sustainable finance ambitions, raising its target to R450 billion by 2028, with R177 billion already mobilised since 2022. Central to this commitment is the financing of renewable energy projects that power mining operations and industrial hubs, including landmark initiatives such as the 140MW Ishwati Wind Farm (R4.9 billion) and the Diaz Wind Project in Namibia (NAD1.2 billion). In 2024, the bank’s renewable energy financing was nearly six times higher than non-renewable, underscoring its dedication to clean energy solutions for beneficiation industries. A compelling case study in Namibia illustrates this approach: Standard Bank structured a blended finance solution for a solar-plus-storage project supplying clean power to a manganese processing plant. This not only reduces the carbon intensity of operations but also enhances energy security, reinforcing the bank’s role in driving sustainable industrial growth across Africa.

3. Rail and Logistics Modernisation

Efficient logistics remain central to Africa’s industrialisation drive, with renewed focus on rail and digital solutions to cut costs and improve competitiveness. Public Private Partnership are being advanced to revitalise Southern Africa’s rail network, with potential investment of R100–R120 billion earmarked for upgrades to Transnet and PRASA. These projects are critical for shifting the region’s mineral economy from exporting raw ore to transporting processed goods, supporting local beneficiation. Alongside rail, technology-enabled logistics platforms such as Tripplo are improving freight booking and supply-chain visibility across the Southern African Development Community (SADC), strengthening intra-African trade. In Mozambique, a recent rail corridor upgrade connecting lithium mines to processing hubs has reduced transport costs by 30%, making local refining economically viable and underscoring the role of infrastructure in unlocking industrial growth.

4. Supporting Industrial Ecosystems

Supporting industrial ecosystems across Africa increasingly depends on the integration of renewable energy and strategic investment advisory. Recent financing arrangements include US$200 million in senior debt for Cross Boundary Energy, enabling the rollout of renewable infrastructure for mining and heavy industry, notably the Kamoa-Kakula Solar PV and battery storage baseload project in the Democratic Republic of Congo. Alongside energy partnerships, advisory services are guiding mergers, acquisitions, and capital structuring in mining and manufacturing, helping ensure sustainable growth and greater local empowerment within industrial value chains.

Why this matters

Beneficiation is more than an economic imperative; it is a strategic necessity. It creates skilled jobs, strengthens governance, and positions Africa as a global hub for green technology. It also aligns with frameworks from the African Union, World Bank, and World Economic Forum, which call for local value addition and infrastructure investment as the fastest route to inclusive growth.

Africa’s demographic dividend and resource wealth can power a new industrial era if value addition becomes the norm.

Driving the future of growth

Southern Africa is increasingly positioned to become a hub for green technology and industrial growth but realizing these potential hinges on coordinated collaboration across sectors. Governments must implement enabling policies that incentivize local beneficiation, while mining companies need to commit to processing minerals within the region rather than exporting raw ore. Notably, the Government of Zimbabwe has introduced fiscal incentives for holders of Special Mining Leases (SML), granting them a reduced income tax rate of 15%, compared to the standard 24.72%. These measures are specifically designed to stimulate investment in beneficiation and local mineral processing, ensuring that value is added within the country rather than through the export of raw materials. At the same time, financiers are tasked with innovating solutions that de-risk complex projects and attract long-term investment. If these elements align, the region can leverage its critical mineral wealth to drive sustainable industrialization, strengthen energy security, and unlock a new wave of economic growth across the African continent.

Africa has served as the source of raw wealth for centuries. Now, there is a bigger opportunity is to generate more profits within our continent. When we co-develop markets, rail, renewables, processing, and supply-chain traceability, the value grows and accrues to Africa. That’s how we win together. DM

Read more on Standard Bank Corporate and Investment Mining and Metals insights here.

Author: Tania Mandaza, Vice President, Mining & Metals, Stanbic Bank Zimbabwe