Pioneering projects in Tanzania, South Africa, and Nigeria aim to bolster production capacities by the late 2020s.
Data from the U.S. Geological Survey show that Tanzania, South Africa, and Nigeria hold the continent’s largest known reserves, positioning them at the forefront of a new global race for rare earths, resources that could prove pivotal for Africa’s industrial and strategic ambitions.
However, this does not imply that other African countries lack rare earth reserves; it only reflects deposits that are currently traceable, publicly verified, and documented through mining company disclosures and supply-chain traceability systems.
As Africa’s role in the global rare earths market expands, supply chain transparency and sustainability are becoming key priorities.
The growth of B2B e-commerce platforms has improved connectivity between manufacturers, distributors, and retailers, strengthening the efficiency of rare earth supply chains.
In parallel, companies are increasingly adopting blockchain technology and other digital traceability tools to ensure responsible sourcing and ethical production.
These measures are driven by rising consumer scrutiny, evolving regulatory frameworks, and the broader demand for transparency across African mineral supply chains.
Industrial demand for rare earths continues to accelerate, underpinned by their critical role in clean energy technologies and advanced manufacturing.
Neodymium-iron-boron magnets, often alloyed with praseodymium or dysprosium, are essential components in wind turbines and electric vehicle motors, with each turbine or vehicle requiring several kilograms of these materials.
Rare earths are also indispensable in electronics, communications infrastructure, and defence systems.
As global economies seek to reduce strategic dependence on China-dominated supply chains, Africa is attracting growing investor interest. The global rare earths market is projected to expand at an annual rate of about 10 percent through 2032.
Tanzania leads Africa, with 890,000 tonnes of reserves and 3.34 million tonnes of advanced resources. Its Ngualla deposit, one of the world’s largest undeveloped neodymium-praseodymium projects, is expected to start production in 2027.
South Africa holds 790,000-860,000 tonnes, with projects including Steenkampskraal, Phalaborwa, Zandkopsdrift, and Glenover, several set to begin production by 2029.
Nigeria has 127,200 tonnes of traceable reserves, with large unexplored areas offering growth potential.
Exploration investment has rebounded, rising from $1.7 million in 2017 to $34.8 million in 2024. Projects beyond Tanzania and South Africa, such as Angola’s Ozango and Malawi’s Kangankunde, are expected to start by 2026. Africa’s rare earth resources are now identified across twelve countries.
China remains the dominant global producer, accounting for 69 percent of output. Africa’s challenge is converting its reserves into production, processing, and strategic influence as new mines are expected to begin operations between 2026 and 2029.
Read more on Business Insider Africa
