Rising Rare Earth Demand Accelerates Exploration and Investment Across Africa

Global demand for rare earth elements is projected to triple by 2035, rising from 91,000 tons in 2024 to approximately 150,000 tons. As producers and consumers seek diversified supply chains to meet this surge, Africa is emerging as an increasingly strategic source of these critical minerals. Forecast to contribute 9% of global rare earth output by 2029, the continent is accelerating exploration and drilling activity as governments and developers work to convert geological potential into commercial production.

Although large-scale production remains in its early stages, Africa’s high-grade deposits, improving project economics and shorter development timelines are positioning the continent as a competitive supplier to global markets.

Expanding Africa’s Rare Earth Exploration Pipeline

Rising demand driven by electric vehicles, renewable energy technologies and advanced manufacturing is prompting African nations to intensify exploration efforts, support local job creation and attract foreign mining investment.

In Angola, London-listed Pensana has begun preparations for a 7,000-meter infill drilling program at the Longonjo Mine – the country’s first rare earth project. The program supports a planned early 2027 mining and stockpiling start, with initial production targeted at 20,000 tons per annum (tpa) and expansion potential to 40,000 tpa in a second phase. At full capacity, Longonjo could supply around 5% of global magnetic rare earth demand, positioning Angola as a significant international supplier.

Elsewhere across the continent, exploration momentum continues to build. In Botswana, Canada’s Tsodilo Resources is planning a 15,000-meter drilling campaign in 2026 at the Gcwihaba project, while Kavango Resources is advancing further drilling at its Ditau project alongside partner engagement efforts. In South Africa, Rainbow Rare Earths is progressing drilling at the Phalaborwa project, with a feasibility study targeted for completion by the end of 2026.

In Namibia, ReExploration continues work at its Eureka and Lofdal projects following multiple private placements completed in 2025. Meanwhile, in Mozambique’s Tete province, Altona Rare Earths is advancing drilling at the Monte Muambe high-grade gallium project, which has already defined a maiden mineral resource of 13.6 million tons grading 2.42% total rare earth oxides.

Rising Demand Fuels Investment Momentum

While most African rare earth projects remain in development or pre-production, global investor appetite is strengthening, with several assets securing financing to fast-track progress.

In October 2025, South Africa’s Steenkampskraal Monazite Mine received its first funding tranche from the Industrial Development Corporation, supporting metallurgical development and production expansion. With an average grade of 14.5% total rare earth oxides, the deposit ranks among the highest-grade rare earth projects globally and underscores South Africa’s growing role in the supply chain.

Investment momentum is also gaining pace in Malawi, where the Songwe Hill project secured $4.6 million from the U.S. International Development Finance Corporation in September 2025 to advance front-end engineering and design studies. With Africa expected to attract up to $50 billion in critical minerals investment between 2024 and 2040, rare earth projects are becoming central to translating investor interest into near-term production capacity.

Spotlight on African Mining Week 2026

As Africa’s rare earth sector advances, African Mining Week (AMW) – scheduled for October 14–16, 2026, in Cape Town – will highlight key project developments and emerging investment opportunities across the continent. The event will feature high-level panel discussions, exhibitions and targeted networking sessions, connecting global investors with African developers, regulators and value-chain stakeholders.