Our latest ranking of Africa’s top 25 mining destinations offers a revealing snapshot of the continent’s mining landscape – one of both significant promise and persistent challenge. This year’s results put Southern African countries in the lead. Morocco and copper-rich nations are close behind, and several countries under military rule are also making their presence felt.

The rising demand for critical minerals across the globe has intensified development and exploration in the mining sector worldwide. In 2024, S&P Global estimated that global expenditure on mining development was valued at $9.4bn and exploration was $1.27bn.

South Africa on top

At the top of our ranking is South Africa, by a wide margin. The historical heart of the continent’s mining industry, the country has nevertheless frequently made international headlines in recent years for its weaknesses: electricity shortages, logistical challenges and endemic corruption.

The mining industry there appears outdated, weighed down by regulatory uncertainties and falling platinum producer profits. Despite these numerous setbacks, the continent’s largest economy maintains such advantages that its power of attraction far surpasses that of others. It boasts the best road and rail networks in Africa, earning the highest score in our ranking for infrastructure. Institutions and the financial system are more mature and solid here than anywhere else on the continent.

…there is a renewed interest in platinum due to its key role in the development of technologies related to green hydrogen

Most importantly, South Africa remains a country with immense mineral reserves, and their extraction appears easily profitable. It ranks first in our list for this criterion, as well as for ongoing critical metals projects, particularly due to platinum. Although this mineral, for which South Africa holds 80% of global reserves, is suffering from the shift towards electric vehicles – much of its demand is tied to catalytic converter production – it remains a metal for the future.

That’s because “there is a renewed interest in platinum due to its key role in the development of technologies related to green hydrogen”, says Guillaume Marion, a manager at EY.

Neighbouring Namibia and Botswana follow in our ranking, but at a respectable distance (Namibia is 12.5 points behind South Africa in the overall score). These two countries are often praised for their institutional stability, crucial in the sector.

Botswana even ranks first in terms of legislative framework and business climate. Known for its diamonds, primarily mined by De Beers, the country is also rich in transition metals.

Namibia ranks second for the number of critical minerals projects underway, just behind South Africa but tied with Democratic Republic of Congo. Windhoek is not only a hub for uranium but also has lithium and copper, and its business climate is attractive.

Copper takes the lead

The next three countries in the ranking also have substantial copper reserves, crucial for the energy and digital transitions because of its exceptional conductivity.

DRC (5th) holds the largest copper reserves on the continent (80 million tonnes), with high-grade deposits. This makes the country appealing despite a very poor business climate (24th in the ranking) and legislation and governance that fail to inspire confidence (22nd). “Even if DRC is worrying, the return on investment is high: it has exceptional deposits,” says one industry expert.

With the second-largest copper reserves in Africa (21 million tonnes), Zambia shares 5th place in our overall ranking with DRC. “The country benefits from the perceived risk in some neighbouring countries,” says Marion at EY. “It has also put in place a framework that attracts a very diverse range of players in copper: Canadian giant Barrick Gold, American junior KoBold Metals, Chinese groups and others from the Gulf.”

Authorities have also laid out an ambitious plan to boost production from 700,000 to 3 million tonnes annually by 2030.

Facing the two copper giants, Morocco (4th) looks less impressive with its 11.6 million tonnes, but its legal framework and business climate are highly praised, ranking second in our list.

It is worth noting that a favourable framework does not prevent all conflicts: British company Emmerson launched an arbitration against the kingdom at the end of 2024 over environmental concerns related to its Khemisset potash project.

Juntas: more or less attractive

While West African juntas have shaken the mining sector, the consequences have not always had a huge impact on their attractiveness as a mining destination. Guinea ranks 7th in our list. Weighed down by a poor perception of its legal framework and governance, as well as limited infrastructure, the country makes up for it with vast reserves of bauxite, gold and iron.

Remarkably, the country’s management under General Mamadi Doumbouya since the 2021 coup has not deterred investors. Rio Tinto, Baowu and Winning Consortium Simandou are investing about $20bn to bring the Simandou iron project into production this year. They’ve also signed tens of millions of dollars in contracts with Guinean companies. Indeed, having a network of national players who can meet the mining sector’s needs and local content requirements is now key to attracting investors.

Although Mali does not have the same image as its neighbour due to ultra-tense negotiations between the junta in power and Western mining operators over the 2023 mining code, it ranks 11th in the list. Burkina Faso, plagued by security threats, is 15th. Both countries are rich in gold: “Among investors, there are cautious ones and pragmatic ones. For the latter, profitability is key. At more than $2,600 an ounce, political and security uncertainty is manageable,” says one consultant.

In contrast, Niger (21st), more known for its uranium than its gold, suffers from the worst score in our list in terms of infrastructure. Yellowcake (uranium concentrate) is exported by road or rail, while gold is shipped by air. Niger also ranks last for its legal framework and governance.

Yet today, many find Mali even less attractive. In addition to the provisions of its new code, more lucrative for the state, Mali is unappealing due to regulatory instability, harsh measures, unclear parts of its legislation and increased restrictions on repatriating funds abroad, where dividends and loan repayments are made. Governments’ interests don’t always align with those of investors.

Looking long-term

“The attractiveness of Sahel countries depends on each actor and where they come from,” says Marion. “It’s likely that Western companies will limit projects there in the coming years, but companies from other regions may adapt to the situation. For states, reducing the number of mining companies with the potential to invest could diminish their negotiating power, which could prove disadvantageous in the long term.”

At the bottom of our ranking, Zimbabwe‘s (20th) position is no surprise. Despite diverse mineral resources, the country has long been considered difficult for business, due to corruption, hyperinflation and a struggling financial system.

Yesterday’s underdogs may be tomorrow’s favourites

Similarly, Madagascar (22nd) has lost points with investors over time. Since 2011, the granting, renewal and transformation of mining titles have been suspended. In 2023, however, the authorities announced a revival plan, offering hope for improvement in the coming years. The island may follow the trend of Zambia and Tanzania, which initially alarmed investors before making a comeback.

In the mining sector, it’s truly the long-term that matters. Yesterday’s underdogs may be tomorrow’s favourites.

Methodology

To create our ranking, we established five main categories of criteria: the available geological reserves of 11 major minerals in Africa (bauxite, cobalt, copper, diamonds, iron, graphite, gold, lithium, manganese, nickel and platinum); the number of ongoing projects involving critical minerals; country risk and business climate; regulation and governance; and the quality of infrastructure (transport and energy).

The first two criteria, relating to minerals, account for 50% of the final score. The remaining three criteria, which pertain to the environment conducive to the development of the mining sector, collectively account for the other 50% of the final score, divided equally.

Multiple sources were used, including the Fraser Institute, Coface, the United States Geological Survey (USGS), Critical Minerals: Pivotal Outlook (tool developed by Africa Business+ and EY) and theglobaleconomy.com.

The data extracted from these sources was standardised and harmonised by assigning a score out of 100 for each criterion. For instance, geological reserves were converted into dollar values based on the market price of each mineral as of 31 December 2024. These values were then scaled proportionally to produce a score out of 100.