That was the central message from Namrata Thapar, Global Head of Metals & Mining at the International Finance Corporation in an interview with MITV during Investing in African Mining Indaba 2026.

In the discussion, Thapar outlined why Africa remains one of the most important mining investment destinations globally, while emphasising that capital will increasingly flow only to projects that demonstrate strong ESG performance alongside clear development benefits for host countries.

“Profitability and strong environmental, social and governance practices go hand in hand,” she said. According to Thapar, responsible mining practices are no longer simply a compliance requirement but a core investment consideration. Poor ESG performance can create operational disruptions through community conflict, environmental disputes or regulatory interventions.

“Proactive mitigation of ESG risks creates long-term shareholder value,” she explained, noting that addressing social and environmental risks early protects project economics and operational continuity.

Africa’s strategic role in the energy transition

Thapar emphasised that Africa’s mineral resource base gives the continent a critical role in global supply chains for energy transition metals. Africa is estimated to host roughly 30% of the world’s mineral resources, including significant reserves of copper, cobalt, nickel and lithium, metals essential for electric vehicles, batteries and renewable energy systems. “Africa is not peripheral, it is essential to the global energy transition,” she said.

As global demand for these materials accelerates, Africa’s mining sector is expected to attract growing interest from international investors seeking long-term supply security.

Mining must deliver development impact

For development finance institutions such as the IFC, mining investments are evaluated not only on financial returns but also on their broader economic and social impact. Thapar highlighted that large-scale mining projects can serve as catalysts for development by generating government revenues, employment, export earnings and infrastructure.

Shared infrastructure built around mining operations often delivers benefits that extend far beyond individual projects. This multiplier effect, she said, is central to ensuring that mineral wealth translates into broader economic growth across host countries.

Impact investing is gaining traction

Thapar also pointed to a broader shift in global capital markets toward investments that combine commercial returns with measurable development outcomes. “Responsible investment will grow as a subset of the overall investment pie,” she said.

Institutional investors increasingly want their capital to support projects that generate both financial performance and positive social impact, a trend that aligns with many emerging mining opportunities across Africa.

Governance and policy stability remain critical

Despite Africa’s strong geological potential, Thapar stressed that investor confidence ultimately depends on stable regulatory frameworks and predictable policy environments. Governments must maintain transparent mining policies, strengthen institutions and provide regulatory certainty to attract long-term private capital. This balance, she noted, enables countries to capture fair value from their resources while remaining competitive investment destinations.

Moving beyond raw mineral exports

Another key theme in Thapar’s investment outlook is the need for greater local value creation within African mining economies. She advocates a shift beyond the export of raw minerals toward local beneficiation, stronger domestic supply chains and skills development linked to mining projects. Developing downstream industries and local service ecosystems can help ensure that mineral wealth generates lasting economic diversification rather than short-term export revenues.

Decarbonising mining operations

Thapar also emphasised the importance of reducing the carbon footprint of mining itself, particularly for metals used in clean energy technologies. Initiatives supported by the IFC are increasingly focused on lowering emissions in mining operations, including sectors such as copper and nickel, while ensuring that projects continue to support jobs, communities and economic growth. Her message is clear: the energy transition will require significantly more mining, but it must also be cleaner mining.

Partnerships to unlock capital

Finally, Thapar highlighted the growing importance of collaborative financing models in the mining sector. Blended finance structures involving development finance institutions, commercial banks, governments and mining companies are increasingly used to de-risk large projects and mobilise private investment. These partnerships are becoming particularly important in Africa, where infrastructure gaps and financing challenges can otherwise delay project development.
 

Watch all of the MITV interviews from Mining Indaba 2026

Ultimately, Thapar believes Africa’s mining sector remains one of the most compelling investment opportunities globally, provided projects align commercial returns with sustainability, transparency and tangible economic development.

In her view, the continent’s mineral wealth has the potential to attract significant international capital, but only if mining projects deliver lasting benefits for both investors and host economies.