Mining in Africa and its investment opportunities – There are more than a million reasons why you will love to invest in the mining sector in Africa and here’s the thing, over 30% of the world’s mineral resources ranging from bauxite, cobalt, copper, graphite, gold, lead-zinc, limestone copper and others are located within the shores of the African continent.
Since the year 2000, more than 35% of African GDP has been from mining. Mining activities in Africa account for more than 20% of the continent’s economic activity as well as over 10% of the continent’s export earnings; a statistics bettered only by the oil and gas sector.
While issues such as power, education, politics, and transport may serve as a major disadvantage from investment in the continent, there’s no doubt that the opportunities far overshadow the challenges.
Why should you invest in Africa?
- Demand for African commodities:
Nigeria, for instance, is home to more than 10million tons of lead-zinc deposit. Construction, medicine, ammunition, nuclear weapons, containers and so many other valuables are created by combining lead-zinc minerals with other components. Among other equally valuable mineral resources, over 40% of the world’s gold reserve is located in Africa.
- Profit capitalization:
According to a study, the African stock market capitalization mark exceeded $1 trillion with an annual profit dividend on the capital of companies located in Africa capped at 65-70%. This figure is higher than what is obtainable in China, Vietnam, and India. This portrays the fact that investment in Africa is much more profitable when compared to other regions.
- A growing and young workforce:
Africa has an abundance of middle-class and young people venturing into the mining sector. This provides investors with a large pull of young workforce to select from.
Let’s take a look at some of the most prominent minerals available for exploration in Nigeria and Africa
- Iron Ore:
More than 3 billion metric tons of iron ore exist across the geographical boundary of Nigeria. As we all know, the world will never run out of usage for iron.
- Bauxite:
One-third of the world’s bauxite resources can be found in Guinea. Interestingly, bauxite remains largely unexplored in Guinea. This situation provides a safe paradise for investors who will be willing to invest in Africa’s rich bauxite mines.
- Coal:
Africa has a rich deposit of coal within its shores. Nigeria which is not the country with the largest deposits of coal has nearly 3 billion coal deposits across the country. Countries like Botswana and Mozambique also boast of significantly high coal reserves. While the world is increasingly becoming focused on renewable energy, the need for coal will not go away in the nearest future.
- The abundance of Diamond, Gold, and Uranium:
Namibia is rated as the fifth largest producer of uranium and diamond, Botswana is also on the rise as a mining hub for Gold. While South Africa seats in a comfortable position as the gold haven in Africa, the potential is also huge in other Africa countries like Ghana and Nigeria.
- The abundance of Talc minerals in Nigeria:
Nigeria has over 40million tons of Talc in mineral deposits. The majority can be found in Osun, Niger, Kogi and Kaduna state. Putting in mind the diverse use of Talc, it is one of the mineral deposits that will forever return high ROI for investors.
- Bitumen, Limestone and copper:
More than 17 billion deposits of Bitumen can be found within the geographical boundary of Nigeria. Nigeria also has high deposits of Limestone and copper.
Nigeria and Africa, in general, is still the only continent with high ROI from mining activities. Countries across the continent are always on the lookout for potential investors. This is an opportunity for all business-minded individuals to benefit from it.
Africa is not only the home of several unexplored natural resources in commercial quantities; it is also the continent with the friendliest mining regulations.
At Wasia African Mining Co. Ltd, we provide you with state of the art mining techniques which are cost-effective and influenced by the latest safety regulations. Our services are not limited to mining and exploration; we assist our clients in setting up mines and marketing the mined materials in the local and international markets.
We bring to you the finest innovations in the mining sector in Africa, investment opportunities, and all you need to know about the Africa mining sector. We are the investment partner you will love to have as an ally. If you will like to learn more about how we can be of help, contact us via any of the options provided on our contact page.