Securing Minerals for the Energy Transition 2025

Conclusion The IEA predicts that the supply-demand gap for critical minerals will quadruple by 2040, challenging global supply chains and the energy transition. While SAR countries hold vast reserves, mining remains underexplored and underfinanced. Unlocking investment is crucial not only for the global transition but also to drive local economic value through job creation, infrastructure development and revenue retention, powering a sustainable future and inclusive growth. Innovative financing tools, like de-risking structures, guarantees and blended finance, can help unlock funding for critical minerals. However, it is equally vital for governments, mining companies, financiers and international partners to ensure these investments also support broader development and better living conditions. Public-private partnerships like the Lobito Corridor can help drive national growth and benefit local communities. International partners also have a role to play, such as the EU in Namibia’s renewables-powered iron production. This shows how renewables-focused energy strategies can strengthen the ESG case for investment. Stakeholder engagement and community participation are essential to ensure local populations benefit from investments. Through human capital and local skilled workforce development, SAR countries can support citizens through employment, training, enterprise development and community ownership. Developing industrial clusters and promoting local beneficiation could help SAR countries move down the value chain, industrialize and grow their economies. By localizing critical minerals value chains through clean hydrogen and green tech manufacturing, they could boost economic growth, create quality jobs and support inclusive development. This could also position the region as a leader in clean energy technology, driving industrial decarbonization and enhancing energy security. Securing Minerals for the Energy Transition: Finance for Southern Africa 28