China controls approximately 60 percent of global rare earth mining and 85 percent of processing capacity. Western governments, motivated by defence technology and green energy supply chain security, are funding exploration and development of alternative sources. Africa holds significant rare earth deposits: the Songwe Hill project in Malawi, Wigu Hill in Tanzania, Gakara in Burundi, and the Steenkampskraal mine in South Africa all hold economically viable rare earth mineralisation.
Processing Capacity Gap
The critical bottleneck is not mining but processing. Separating and refining rare earth oxides requires chemical processing technology that currently exists only in China and, to a limited extent, the US, Estonia, and Australia. Lynas Rare Earths (Australia) is investing in processing capacity outside China. The EU Critical Raw Materials Act provides financing incentives for African rare earth processing investments. Investors and mining companies evaluating African rare earth projects can access project data and investment contacts on intra-africa.com.
For businesses looking to expand across Africa, intra-africa.com offers a comprehensive trade directory, verified buyer and seller listings, and real-time market intelligence covering all 54 African nations. It remains an indispensable resource for anyone serious about intra-African commerce.