G7's €64bn minerals plan reshapes African mining finance
A G7 pledge of €64 billion for 195 critical minerals projects gives African producers the leverage to demand local processing, potentially unlocking stalled frontier mining investments.
G7 leaders agreed at the Evian summit on 17 June 2026 to back 195 critical minerals projects worth €64 billion. The investment package combines equity participation and offtake agreements aimed at capping dependence on any single non-G7 supplier of rare earths and permanent magnets below 60 percent by 2030. The target is a direct effort to dilute China’s grip, which currently covers about 70 percent of global rare-earth mining and 90 percent of processing.
For international investors, the declaration signals a structural shift in how frontier mining projects are financed. The combination of G7 offtake guarantees, blended finance, and political risk insurance is designed to unlock capital for projects in jurisdictions previously deemed too risky. Policy analysts suggest this architecture could eventually form a formal G7 Critical Minerals Investment Fund to de-risk ventures in the Global South.
African governments are using this demand to extract better terms. The continent holds roughly 30 percent of known global mineral reserves, including 85 percent of manganese and 80 percent of platinum and chromium. The Democratic Republic of Congo alone produces 70 percent of the world’s cobalt, a figure set to rise in importance as the International Energy Agency projects cobalt demand will triple by 2050.
Kenya is positioning itself at the forefront of this new bargaining power. On the summit's sidelines, President William Ruto announced a near-final critical minerals deal with Washington. “Kenya will no longer export raw materials. They must be processed inside the country,” Ruto said. The agreement would direct US and G7-linked capital into rare-earth separation and refining facilities, aiming to make Nairobi a regional processing hub rather than a raw ore exporter.
The strategy carries distinct geopolitical and execution risks. By deepening US industrial ties, Kenya risks becoming entangled in US-China rivalry despite a non-aligned posture. Furthermore, while the G7 frames its push as a partnership for local value creation, the underlying driver remains Western supply security. The ultimate test for investors and governments alike will be whether this capital translates into operational processing plants and power infrastructure, or simply reinforces older extractive models under new branding.
