Unlocking sustainable
opportunities in African
mining

The African mining industry faces a defining moment. The demand for critical minerals such as copper, lithium, nickel, and rare earths continues to surge as economies pivot toward decarbonisation and renewable energy sources.

In the late '80s, Anglo American pioneered an innovative supplier development model in South Africa. Through a suite of enterprise funds known as Zimele, the mining giant provided financial support to aspiring entrepreneurs from historically disadvantaged communities, leveraging its sector expertise and procurement networks as catalysts for fostering SME growth and driving broader, socially responsible economic development.

The world is rewriting its rulebook. It’s no longer just about what you produce but how you produce it. For resource-rich regions like Africa, the implications are profound: the value of its vast reserves of critical minerals is now tied not only to their abundance but also to the ethical and sustainable frameworks governing their extraction and processing.

We are pleased to share that Absa has successfully acted as Co-Mandated Lead Arranger, Facility Agent and Hedge Provider alongside Nedbank for Pele Green Energy’s Sonvanger 100MW solar PV power project. This R2.2 billion project is a landmark transaction for Pele Green Energy, positioning them as a leading developer in South Africa’s renewable energy sector.

Absa’s balance sheet commitment will ensure Gamsberg Mine is ranked among the top five zinc-producing mines globally and will help BMM create jobs and improve economic activity in the region. We are invested in your story and invite you to write it with us.

Unfolding a landmark critical minerals transaction with Kamoa Copper, is a story we are proud of. That’s how we are invested in your story.

As a leading Pan-African bank, Absa continues to prioritise the financing of renewable energy projects. Absa Corporate and Investment Banking is proud to have acted as a mandated lead arranger and the sole hedge execution bank in the Envusa Energy deal.

Enterprise and Supplier Development (ESD) investments coupled with a focus on Environmental, Social and Governance (ESG) frameworks, could provide a powerful combination for developing local manufacturing capacity to support the African mining and resources sector.

African-based mining and resource companies which have invested in renewable energy infrastructure over the last few years are not only reaping the benefits through access to cheaper power but also achieving sustainability goals identified by stakeholders including lenders looking to fund expansion.

As the race for valuable commodities intensifies, it is increasingly evident that geopolitical competition will catalyse a wave of Mergers and Acquisitions (M&A), reshaping the landscape of Africa’s resource-rich industries. India, the United States (US), Saudi Arabia and the United Arab Emirates (UAE) are all poised to commit further investment to the continent and Africa will need to find ways to maximise its investment attractiveness amidst global upheaval.

We are proud to have provided advisory services and financing for Infinity Power’s acquisition of Lekela Power, Africa’s largest renewables-focused, independent power producer.

As a leading funder of resource and mining projects on the African continent, we are excited by the confluence of opportunities that 2023 will present.