Private equity is returning to African mining with greater precision, stronger governance frameworks, and a growing focus on ESG-aligned value creation. This shift reflects not only evolving investor expectations, but also a deeper structural transition in the global economy, one that places critical minerals and sustainability at the centre of long-term strategies.
ESG: From Risk to Strategic Imperative
ESG considerations have moved from compliance to core. According to recent industry analysis, environmental and social factors have now overtaken traditional concerns such as licence to operate, supply disruptions or commodity volatility as the primary risks shaping mining investment decisions.
In response, several African governments have introduced or updated legal frameworks to improve ESG clarity and investor confidence. Countries such as Ghana, South Africa and Namibia have embedded sustainability principles into mining codes, with a stronger focus on land use, labour rights and local benefit. These efforts are increasingly backed by development finance institutions, which now often require transparent ESG commitments as a condition for funding.
At the same time, development finance institutions (DFIs) and sustainability-linked lenders increasingly require measurable ESG outcomes as a condition for financing. Metrics such as carbon intensity, water efficiency, and local procurement are not only audited but also tied to pricing mechanisms.
Targeting the Transition Economy
The focus of private equity investment has shifted decisively towards “green minerals” — lithium, cobalt, nickel, graphite, rare earth elements —all essential inputs to battery storage, EV production, and renewable energy systems.
This strategic tilt is well aligned with Africa’s geological profile. Several countries across the continent hold reserves of global significance, yet remain underdeveloped. For investors with long-term horizons and the ability to manage frontier risk, this creates a compelling proposition: access to high-growth assets with built-in ESG relevance.
Firms such as Equitane (formerly the Africa Transformation and Industrialisation Fund) have taken leading positions in large-scale projects, notably in Gabon and the Republic of Congo. Their models integrate job creation, beneficiation, and decarbonisation strategies – positioning themselves for sustainable returns and broader stakeholder alignment.
The Evolution of PE Structures
To support this shift, private capital is also innovating structurally. Impact funds, blended finance vehicles, and sustainability-linked instruments are increasingly used to balance commercial returns with developmental goals.
According to Private Equity International (2024), most capital deployment into mining still comes from specialist funds — those with deep technical expertise and dedicated ESG frameworks. Generalist funds, by contrast, remain cautious due to perceived exposure to governance risk, reporting opacity, and environmental liabilities.
However, for funds with operational sophistication and cross-border structuring capability, the sector offers clear entry points. Notably, renewable-powered mine sites, digital ESG tracking tools, and co-investment models with DFIs are helping reduce both reputational and regulatory friction.
Key Considerations for Gulf-Based Investors
Middle East sovereign and institutional investors – including those with growing exposure to Africa — are increasingly active in the energy transition, infrastructure, and logistics sectors. Mining now presents a complementary play: one that combines access to critical inputs with influence over sustainability outcomes.
Yet success in this space will require:
- strong ESG due diligence frameworks,
- reliable local partnerships,
- and the ability to navigate divergent regulatory landscapes across jurisdictions.
The growing complexity of mining investment — and its rising strategic importance — calls for advisors with both technical depth and regional insight.
Moore Global Perspective
At Moore, we support private equity clients through the full investment lifecycle — from feasibility assessment to ESG assurance and transaction structuring. Our cross-border mining and energy teams work alongside local member firms to offer in-market intelligence, regulatory clarity and strategic execution.
As global capital reallocates toward transition assets, African mining will play a pivotal role. For investors who can align operational rigour with sustainability ambitions, the returns may go beyond financial.
