By: Business insider Africa

Africa is emerging as a significant player in the global rare earth sector, supported by rising exploration spending and new projects expected to commence production before 2030. Tanzania, South Africa, and Nigeria lead the continent with the largest known reserves, positioning them at the forefront of the strategic race for these critical minerals.

The expansion of the sector is increasingly guided by priorities of transparency and sustainability. The adoption of B2B e-commerce platforms and blockchain technology is enhancing supply chain connectivity and enabling more responsible and traceable sourcing, driven by consumer demand and evolving regulations.

Industrial demand for rare earths is accelerating, fueled by their essential role in clean energy technologies like wind turbines and electric vehicles, as well as in electronics and defense systems. As the global market grows at roughly 10% annually, Africa's resources are attracting investment from nations seeking to diversify supply chains away from China's current dominance.

Key projects are advancing this potential. Tanzania’s Ngualla deposit, one of the world’s largest undeveloped neodymium-praseodymium projects, aims to start production in 2027. South Africa has several projects targeting production by 2029. With exploration investment surging from $1.7 million in 2017 to $34.8 million in 2024, Africa’s core challenge is now converting its substantial reserves into operational mines and greater strategic influence within the global market.