Verbatim

“Africa’s mining sector is evolving beyond pure extraction, the real opportunity lies in integrating capital with infrastructure, power and local supply chains.”
On how mining investment is shifting towards broader economic ecosystems

“We finance mining that creates value, for business, for communities, and for Africa. From pit to port to power grid, this is how Africa captures value." 
Reflecting Ecobank’s strategic approach to mining finance at Indaba

“The definition of risk is evolving, global instability is reshaping how investors assess risk in Africa’s mining landscape.” 
On changing risk perceptions during periods of market volatility

“Global volatility is forcing investors to reassess risk, but it also brings Africa’s growth story into sharper focus.” 
On whether instability might improve Africa’s relative attractiveness to capital

“Bankable opportunities are emerging where capital is connected efficiently to credible local and cross-border projects.” 
On what differentiates successful projects in the current investment environment

Mining projects now require an ecosystem financing model

Larbie emphasised that the African mining sector is moving beyond simple extraction projects toward integrated value-chain development. “Africa’s mining sector is moving beyond pure extraction toward integrated ecosystems.”

What this means

Financing increasingly includes power infrastructure, transport corridors, logistics and local supply chains.
Banks must structure funding packages that cover multi-sector development around the mine, not just the mine itself. This aligns with large regional projects such as mining corridors and energy infrastructure supporting mineral exports.

Pan-African banks play a strategic bridging role

Larbie highlighted the importance of regional financial institutions in mobilising capital for complex mining projects across multiple jurisdictions. Key perspective:

• Pan-African banks like Ecobank can bridge international capital and local project execution.
• Their local market knowledge and cross-border presence helps structure financing for projects spanning several countries.
• This is particularly important for corridor-style projects involving rail, ports and multiple mining operations.

The definition of “bankability” in mining is evolving

Larbie stressed that financing decisions are no longer based only on resource size and projected returns.
New factors shaping bankability include:

ESG performance and community impact I Decarbonisation and energy transition requirements I Execution risks and political stability I Infrastructure readiness

These considerations are reshaping how banks evaluate mining investments in Africa.

Broadly speaking

Larbie’s message was that Africa’s mining boom will only be financed through partnerships. These partnerships will involve banks, governments, development finance institutions and private investors. Financing will become increasingly structured around integrated mineral ecosystems rather than standalone mines. While those insights aren’t the same as his recent mining-focused remarks, they show a continuous interest in broader African project financing and investor risk frameworks beyond just commodity sectors.

What is shaping African mining finance today?

From traditional bank lending → hybrid and alternative financing

Ten years ago, most mining projects relied heavily on commercial bank project finance and equity markets. Today, miners increasingly use:

Royalty financing I streaming deals I Prepayment / offtake financing I Mezzanine and hybrid debt-equity structures

These structures allow companies to monetise future production to raise upfront capital and reduce equity dilution. This shift is particularly important for junior and mid-tier African miners that struggle to secure traditional loans.

Rise of streaming and royalty companies

Streaming and royalty financing have expanded dramatically in the past decade. Under these models:

Investors provide upfront capital I In exchange for a share of future production or revenue

They have become a major source of capital for African projects where traditional funding is difficult to secure.

Development finance institutions (DFIs) are far more influential

Ten years ago, DFIs played a supporting role. Today they are central to large mining investments, including:

African Development Bank I Africa Finance Corporation I African Export–Import Bank

These institutions:

Provide risk mitigation I Anchor financing packages I Fund infrastructure corridors linked to mining

For example, infrastructure financing linked to the Lobito Corridor aims to unlock copper and cobalt exports from the Central African Copperbelt. 

Financing is shifting from single mines → integrated mineral corridors

A decade ago, finance focused mainly on individual mining projects. Today financing increasingly covers entire mineral ecosystems, including:

Railways I Ports I Power generation I Processing facilities

Banks now adopt a “mine-to-market” approach linking extraction with logistics and industrialisation.

The energy transition has reshaped investment priorities

The global energy transition has dramatically increased demand for:

Copper I Lithium I Cobalt I Nickel I Graphite I Rare earths

As a result, financing is increasingly directed toward battery and critical minerals projects, often tied to global supply-chain strategies.

ESG and sustainability-linked finance are now central

Ten years ago, ESG considerations were secondary in project financing. Today investors and banks require:

Environmental safeguards I Community impact frameworks I Governance transparency

This has led to sustainability-linked loans and ESG-linked funding structures for mining projects.

Governments are demanding a larger share of mining revenues

Across Africa, governments are renegotiating fiscal terms. Recent examples include:

• Ghana increasing mining royalties and ending stability agreements
• Ivory Coast raising royalties to 8% revenue

This trend reflects resource nationalism and fiscal pressure, which affects project financing models.

Sovereign wealth funds and resource-backed finance are emerging

Some countries are using mining revenues to build sovereign wealth funds or strategic investment vehicles. Example: Guinea plans a sovereign wealth fund funded by the Simandou iron ore project. These mechanisms aim to stabilise revenues and reinvest mining wealth domestically.

Capital markets are fragmenting geographically

Ten years ago, most mining capital came from: London I Toronto I Johannesburg

Today funding is more diversified:

Gulf sovereign wealth funds I Asian banks I Commodity traders I African banks and DFIs

This has made African mining finance more multipolar and geopolitically strategic.

Financing now prioritises local beneficiation and industrialisation

Historically Africa exported raw ore. Now financing increasingly supports:

Smelting and refining I Battery material processing I Downstream manufacturing

Processing minerals locally could increase the value of African mineral output by up to ~75% by 2040.

The big picture

Over the past decade, African mining finance has evolved from: Traditional project finance → complex ecosystem financing

Key characteristics of the new model:

Hybrid capital structures I DFI participation I Infrastructure-linked investments I Energy-transition minerals I ESG-driven funding I Resource nationalism

The African mining sector is shifting toward large, integrated, geopolitically strategic projects financed through multi-layered capital structures rather than simple mine financing.