As global competition for critical minerals intensifies, African governments are increasingly focused on attracting investment into mining and energy transition projects. Yet despite growing investor interest and abundant mineral resources, much of that investment has failed to catalyse the industrial transformation many countries had envisioned.
Speaking during the panel discussion at the Africa Critical Minerals & Energy Transition Dialogue 2026, organised by the Africa Centre for Critical Minerals & Energy Transition (ACCET), Dr. Fikayo Akeredolu argued that the continent’s greatest obstacle is not access to finance, but the way projects are designed, coordinated, and implemented.
According to Dr. Akeredolu, Africa continues to frame many mineral projects primarily as extraction ventures rather than long-term industrial development opportunities. As a result, investments tend to finance the removal of raw materials instead of supporting the infrastructure, industries, and capabilities needed to generate lasting economic value.
“A lot of the investment we’re seeing… is structured more as extraction assets and not industrial assets.”
He explained that international capital is not necessarily avoiding Africa. On the contrary, investors remain willing to finance commercially viable projects where risks are clearly understood and long-term returns are evident.
“There’s actually a lot of money from people ready to invest on the continent because capital moves quickly when the risk-return profile is legible.”
The challenge, he suggested, is that many projects are not structured in ways that inspire investor confidence or maximise developmental outcomes.
Central to his presentation was the principle that investment follows good project design.
“Financing follows structure.”
Rather than focusing solely on extracting mineral resources, Dr. Akeredolu called for projects that integrate mining with broader industrial policy. Such projects would incorporate local processing, supporting infrastructure, skills development, and coordinated planning across government institutions to create sustainable industrial ecosystems rather than isolated mining operations.
He identified three major constraints limiting Africa’s ability to attract transformative investment. The first is weak coordination across government institutions. Successful mining projects, he noted, require multiple sectors—including transport, energy, water, customs, and education—to work together in a coherent manner. Without that coordination, even well-financed projects struggle to deliver broad economic benefits.
Secondly, he pointed to contract instability, where changes in political leadership or policy uncertainty can discourage long-term investment. Investors, he argued, require confidence that agreements will remain predictable throughout the life of a project.
Finally, he highlighted the absence of reliable domestic markets and industrial demand. Building renewable energy infrastructure or mineral processing facilities is only part of the solution; countries must also ensure there are industries and consumers capable of sustaining those investments over time.
Dr. Akeredolu also challenged African policymakers to rethink what constitutes successful investment. Rather than measuring success by the volume of foreign direct investment or the number of mining agreements signed, governments should assess whether projects generate domestic value addition, strengthen local industries, and leave behind transferable knowledge and capabilities.
“We need better contracts and better strategic thinking.”
Regional integration also featured prominently in his remarks. Referring to the African Continental Free Trade Area (AfCFTA), he argued that African countries will strengthen their bargaining position by working collectively rather than negotiating independently with larger global powers.
For Dr. Akeredolu, regional markets provide an opportunity to aggregate demand, coordinate industrial development, and create investment opportunities that individual countries may struggle to achieve on their own.
His keynote concluded with perhaps the clearest takeaway of the entire panel discussion.
“Our main problem in Africa is not necessarily a financing gap; it is a project design gap.”
The observation encapsulated a broader message that resonated throughout the Dialogue: Africa’s critical minerals alone will not guarantee economic transformation. Realising the continent’s ambitions under the global energy transition will depend on designing projects that align investment with industrialisation, institutional capacity, and long-term development objectives.
As African governments seek to reposition themselves within global critical mineral value chains, Dr. Akeredolu’s intervention served as a timely reminder that attracting capital is only the first step. The greater challenge—and opportunity—lies in designing projects capable of converting that investment into sustainable industrial growth.
