Copper exploration: Africa captures only a tiny share of global investment

Despite having 10% of the world's copper reserves, Africa is still lagging behind in exploration budgets for this strategic metal, which is essential to the energy transition. According to a report by S&P Global Market Intelligence, the continent will have received just $200 million in 2024 out of the $3.2 billion invested globally, the highest level since 2013. This marginalisation raises questions at a time when demand for copper is exploding.

Ranked second to last among the world's regions, just ahead of the Pacific Rim, Africa is struggling to attract funding despite the clout of the DRC and Zambia, two copper giants. The DRC, the world's second largest producer, received just 71.5 million dollars in 2024, compared with 637 million for Chile, the world leader, and 233 million for Peru. Zambia, with 65.5 million, had a similar level, far behind the United States (456 million), Canada (336 million) and Australia (305 million). Latin America, with 1.4 billion dollars, largely dominates investment.

This situation is not new: in 2023, Africa was already in second-to-last place. However, financing rose by 24% that year, the highest increase in the world, before slowing to +1% in 2024. Despite this slight upturn, the continent remains under-invested relative to its potential.

The DRC and Zambia alone are home to 10% of the world's copper reserves, according to the United States Geological Survey, and 65% of the new reserves identified in 2023 were found in the DRC, according to S&P. Yet exploration budgets remain low. Of the 3.2 billion invested globally, 39% (1.24 billion) targeted exploration at existing mines, while initial exploration, the key to new discoveries, fell by 9%, accounting for just 25% of spending compared with 40% in 2015.

Demand for copper, driven by green technologies such as electric vehicles and renewable energy, is expected to grow by 70% by 2050, according to BHP. Meeting this need will require $2,100 billion of investment, a significant proportion of which will need to be targeted at Africa to exploit its vast reserves. "The continent can no longer be underestimated in exploration budgets", warns an S&P analyst, although the reasons for this weakness - political instability, security risks or lack of infrastructure - were not detailed in the report.

To take advantage of global demand, Africa needs to attract more financing. The DRC, with projects such as Kamoa-Kakula, and Zambia, with its historic deposits, have the potential to become world leaders. But without greater mobilisation of investors, the continent risks being left on the sidelines of a strategic market, at a time when copper is becoming a pillar of the global energy future.