U.S. International Development Finance Corporation Funds African Rare-Earth Projects Amid Private Investor Reluctance
The U.S. International Development Finance Corporation (DFC) is actively supporting rare-earth projects across Africa, committing $62.8 million to initiatives in Malawi, Angola, Madagascar, and South Africa. This funding comes as private investors have shown reluctance to finance these ventures, despite their strategic importance. A significant portion of this investment, approximately $50 million, is directed towards the Phalaborwa project in South Africa, backed by Dublin-based mining investor TechMet. DFC executives, speaking anonymously to Reuters, indicated that private capital is not entering these projects, and the DFC aims to help these projects reach a de-risked stage to attract future private sector investment. None of the DFC-backed projects have yet reached production. Africa currently accounts for 20% to 25% of the DFC’s global investment portfolio.