Rare Earth Elements in Africa The Continent’s Next Critical Minerals Frontier

Rare earth elements rarely make headlines, but they quietly power almost every piece of modern clean technology from electric vehicle motors and wind turbines to defense systems and smartphones. As the world races to diversify rare earth supply chains away from China’s dominance, Africa is emerging as one of the most closely watched frontiers for new production. For investors focused on minerals and mining, understanding where Africa’s rare earth sector stands today and where it’s headed is essential.

This guide breaks down what rare earth elements are, why Africa matters to the global supply chain, which projects are leading the way, and what investors should know before entering this still-emerging but strategically vital market.

What Are Rare Earth Elements, and Why Do They Matter?

Rare earth elements (REEs) are a group of 17 minerals used primarily in permanent magnets found in electric vehicle motors, wind turbines, and defense systems, according to reporting from Ecofin Agency. China currently controls most of the world’s rare earth mining and refining capacity and has tightened export controls in recent years, intensifying pressure on governments and manufacturers worldwide to secure alternative, diversified sources of supply.

This is precisely where Africa enters the picture. The continent hosts an estimated 99 rare earth deposit sites across 27 countries, according to U.S. Geological Survey data cited in a report prepared for U.S. national security analysis — with half of all known deposits concentrated in just five countries: Mozambique, Angola, South Africa, Namibia, and Malawi.

Africa’s Current Rare Earth Landscape: Promise, Not Yet Production

No Commercial-Scale Mine — Yet

As of 2026, Africa does not have an actively operating, commercial-scale rare earth mine. Burundi’s Gakara mine, developed by Rainbow Rare Earths, was Africa’s first industrial-scale rare earths operation when it entered production in 2017 — but it has been inactive since 2021 after the Burundian government requested a suspension of activities. That leaves the continent’s rare earth story centered on a pipeline of advanced development-stage projects rather than active output.

Malawi’s Kangankunde Project: Africa’s Likely First Mover

Australian miner Lindian Resources’ Kangankunde project in Malawi remains on track to begin operations in the fourth quarter of 2026, which would make it potentially Africa’s first new industrial-scale rare earths mine since Gakara launched in 2017. The project is expected to produce roughly 20,000 metric tons of rare earths concentrate annually during its first phase, according to Ecofin Agency.

Tanzania’s Ngualla Project: Scale Meets Complexity

Tanzania’s Ngualla Carbonatite deposit in the Songwe Region holds a JORC resource of approximately 176 million tonnes grading 2.24% total rare earth oxide, with a high-grade zone reaching 4.29% TREO — making it one of the continent’s largest known deposits. The project, operated by Mamba Minerals Corporation (84% owned by Peak Rare Earths), holds a Special Mining Licence granted in April 2023, with first production targeted for end-2026, subject to roughly $320 million in project financing. Notably, Chinese state-linked rare earth company Shenghe Resources holds a binding offtake agreement for 100% of Ngualla’s concentrate output and has bid to acquire Peak Rare Earths outright — a dynamic that illustrates a broader pattern of Chinese companies securing African rare earth supply ahead of Western competitors.

Malawi’s Second Project: Songwe Hill

Beyond Kangankunde, Malawi also hosts Mkango Resources’ Songwe Hill project, which was designated a “Strategic Project” by the European Union under its Critical Raw Materials Act in 2025. Songwe Hill has completed a feasibility study and is expected to produce approximately 1,950 tonnes of neodymium-praseodymium (NdPr) and 56 tonnes of dysprosium/terbium oxide annually over an 18-year mine life. The project secured $4.6 million in financing from the U.S. International Development Finance Corporation in September 2025 to advance front-end engineering and design — a sign of active Western government engagement in the region.

Projected Market Growth

Benchmark Mineral Intelligence estimates that eight new mines planned across Tanzania, Angola, Malawi, and South Africa could allow Africa to account for 9% of global rare earths supply by 2029. Looking further ahead, Fitch Solutions projects Africa could represent roughly 7% of global rare earths production by 2034, and around 16% of supply outside China by that point. More broadly, Africa is forecast to attract up to $50 billion in investment for critical minerals development between 2024 and 2040, with rare earth projects increasingly central to converting investor interest into tangible production capacity.

Other Projects Across the Continent

• South Africa — Rainbow Rare Earths is advancing drilling at its Phalaborwa project, targeting a completed feasibility study by the end of 2026. Two additional South African projects, Steenkampskraal and Zandkopsdrift, remain at earlier development stages.
• Botswana — Canada’s Tsodilo Resources is planning a 15,000-meter drilling campaign in 2026 at the Gcwihaba project, while Kavango Resources is advancing exploration at its Ditau project.
• Namibia — ReExploration continues active exploration at its Eureka and Lofdal projects following several private placements raised in 2025.
• Mozambique — Altona Rare Earths is drilling at the Monte Muambe high-grade gallium project in Tete province, which has already defined a maiden resource estimate of 13.6 million tonnes at 2.42% total rare earth oxides.
• Kenya — The high-grade Mrima Hill project remains tied up in legal and regulatory challenges following a license revocation, though a new consortium has shown renewed interest in reviving it.

The Geopolitical Backdrop: China vs. the “Ex-China” Coalition

Africa’s rare earth mines have become focal points in a broader global effort to diversify supply chains away from Chinese dominance. As detailed by Rare Earth Exchanges, this competition involves Chinese companies seeking to secure raw material access for China’s processing industry on one side, and a coalition of U.S., EU, Japanese, and Australian interests aiming to build an “ex-China” rare earth network on the other. Malawi’s Songwe Hill project backed by EU and U.S. development finance exemplifies the Western-aligned approach, while Tanzania’s Ngualla project illustrates how quickly Chinese offtake agreements and acquisition bids can shape control over flagship African assets.

Key Risks Investors Should Understand

• Pre-production status — With no commercial-scale mine currently operating in Africa, nearly all opportunities remain at exploration, feasibility, or construction stage, carrying higher execution and financing risk than producing assets elsewhere.
• Political and regulatory risk — Burundi’s suspension of the Gakara mine and Kenya’s long-running Mrima Hill license dispute illustrate how quickly political decisions can stall even advanced projects.
• Concentrated Chinese offtake control — Several flagship projects, including Ngualla, are tied to binding Chinese offtake agreements, which may limit the diversification benefits Western buyers are seeking.
• Financing and timeline risk — Major projects like Ngualla depend on completing hundreds of millions of dollars in financing and resolving ownership transactions, both of which can delay or alter production timelines.
• ESG and community considerations — Rare earth extraction methods, including ionic clay processing being explored in some African deposits, raise environmental and community concerns that require careful due diligence.

How Investors Can Approach Africa’s Rare Earth Sector

1. Track financial milestones closely. With most projects still in development, financing completions, offtake agreements, and construction starts are the key signals of real progress.
2. Understand ownership and offtake structures. Knowing whether a project’s output is committed to Chinese, European, or U.S. buyers helps clarify its strategic positioning and risk profile.
3. Watch government-backed development finance. Projects receiving support from institutions like the U.S. DFC or EU Critical Raw Materials Act designation often carry stronger governance oversight and Western market access.
4. Diversify across project stages and countries. Balancing exposure between more advanced projects (Kangankunde, Songwe Hill) and earlier-stage exploration plays can help manage execution risk.
5. Monitor major industry events. Conferences such as African Mining Week, held annually in Cape Town, are key venues where project milestones and new investment opportunities in the sector are announced.

Conclusion: A Frontier Market Worth Watching Closely

Africa’s rare earth sector is still in its early innings no commercial-scale mine is currently producing on the continent but the pipeline of advanced projects in Malawi, Tanzania, South Africa, and beyond signals genuine momentum. As global demand for rare earths is projected to triple by 2035 and governments worldwide push to diversify away from Chinese supply dominance, Africa’s geological wealth positions it to become an increasingly important player in this strategic mineral category over the next decade.

Frequently Asked Questions

1. Does Africa currently have any operating rare earth mines? No. As of 2026, Africa has no actively producing commercial-scale rare earth mine. Burundi’s Gakara mine, the continent’s first industrial-scale operation, has been inactive since 2021.
2. Which African country is likely to produce rare earths first? Malawi’s Kangankunde project is on track to begin operations in the fourth quarter of 2026, potentially making it Africa’s first new industrial-scale rare earths mine since Gakara.
3. Why is China involved in so many African rare earth projects? Chinese companies, including Shenghe Resources, have secured offtake agreements and ownership stakes in flagship projects like Tanzania’s Ngualla, reflecting China’s strategy of securing raw material access ahead of Western competitors.
4. How much could Africa contribute to global rare earth supply? Estimates suggest Africa could account for roughly 9% of global rare earth supply by 2029, growing to about 7% of global production — and 16% of supply outside China — by 2034.
5. What are the biggest risks in African rare earth investment? Key risks include the pre-production status of most projects, political and regulatory uncertainty, concentrated Chinese offtake control, financing and timeline risk, and ESG considerations tied to extraction methods.

Ready to explore rare earth and critical minerals investment opportunities across Africa? Connect with the Yes! Invest Africa team today to discover vetted projects positioned at the forefront of the global supply chain diversification movement.