KINSHASA, Oct 12 – The US International Development Finance Corporation (DFC) plans to expand its direct equity investments in Africa, including in critical minerals and related infrastructure, as the United States intensifies efforts to secure strategic supply chains and diversify sources of essential raw materials.
Vibhuti Jain, the DFC’s regional managing director for Africa, told Reuters that the agency would deploy equity alongside, or instead of, other financing instruments when projects are considered strategically important.
“you will see us deploy equity in addition to or in place of other instruments,” Jain said.
She confirmed that several potential investments are under consideration, including projects in Africa’s critical minerals sector, although she did not disclose specific transactions.
“There are a number of projects in our equity pipeline right now, including in Africa, (and) including in the critical minerals sector,” Jain said.
Despite the planned expansion, the DFC expects debt financing, credit guarantees and political risk insurance to remain its principal investment tools for the foreseeable future. Jain said direct equity participation would increase as the agency expands its activities.
More Than $3 Billion Committed to Critical Minerals
The DFC has more than $14 billion in investment commitments across Africa, with critical minerals and projects connected to the sector accounting for more than $3 billion, according to the agency.
Jain said the sector had become a major focus for new investment opportunities.
“So really, this is a sector to which we’re paying close attention,” she said.
The investments come as the United States and other major economies seek to strengthen supply chains for materials used in electric vehicles, renewable energy systems and other advanced technologies. Critical minerals have become an increasingly important area of competition as governments seek to reduce reliance on concentrated sources of supply.
DFC-backed projects in Africa include rare earths developments, a graphite mine in Mozambique and infrastructure intended to improve the movement of minerals from inland production centres to international markets.
Digital Infrastructure and the Lobito Corridor
The agency is also increasing its exposure to strategic infrastructure beyond mining. In September, the DFC announced plans to invest up to $155 million in WIOCC, an African digital infrastructure provider, marking its largest equity commitment to date.
The investment reflects the agency’s use of direct ownership stakes to support infrastructure considered important to economic development and strategic connectivity.
In southern and central Africa, the DFC is backing rehabilitation of the Lobito Corridor, a transport network connecting copper and cobalt-producing regions to the Atlantic coast. The corridor is intended to improve export access for mineral producers and strengthen transport links between mining areas and international markets.
Together, the agency’s investments in mining, transport and digital infrastructure illustrate its broader approach to supporting strategic sectors through a combination of financing instruments.
For African economies, increased DFC participation could provide additional sources of capital for mineral development and related infrastructure. The longer-term economic impact will depend on how projects are structured, the extent of local processing and value addition, and the benefits retained by producing countries.
