By Philip Ellis
Private equity (PE) is making a notable return to African mining, signalling a shift not only in investor appetite, but also in the alignment of capital with sustainable and responsible business practices.
As ESG-aligned projects become a key priority, Africa’s mineral-rich landscape offers both a challenge and an opportunity for private capital seeking high-impact, future-oriented sectors.
ESG as a Core Investment Imperative
Namibia’s mining sector is a vital component of the economy, contributing significantly to the nation’s GDP as well as providing a major source of employment. Significantly, the sector prioritising ESG stewardship.
ESG is no longer an optional consideration – it is a central pillar in the decision-making processes of modern private equity firms. According to some assessments, ESG ranks as the number one business risk in the industry, surpassing even traditional concerns such as license to operate, supply chain disruption and commodity price volatility.
Investors increasingly view strong ESG performance not only as a mechanism for risk mitigation but also as a route to value creation, enhanced stakeholder trust, and long-term viability.
Cognizant of these shifting sands, the Namibian government has implemented ESG-related regulatory frameworks that seek to balance mining activities with environmental protection, fair labour practices and community engagement. Namibia’s Minerals (Prospecting and Mining) Act, for example, is being updated to integrate clearer ESG requirements that align with both global standards and national development goals.
These efforts are supported by global development finance institutions (DFIs), which often require ESG compliance as a condition for funding.
Beyond regulatory pressure, ESG principles also support operational improvements. Mining companies with robust ESG programs are increasingly able to attract lower-cost financing, retain skilled workers, and secure long-term access to resources and communities.
Sectors Attracting Private Equity Interest
The focus of private equity in African mining has shifted toward minerals critical to the green economy. Commodities such as lithium, cobalt, nickel, manganese, graphite and rare earth elements are in high demand for the production of electric vehicle batteries, wind turbines and solar panels.
Many of the positions taken up by these PE firms emphasise local beneficiation, job creation, and carbon-conscious development strategies. Furthermore, the development of off-grid renewable energy projects to power mining operations is becoming increasingly common.
These “green minerals” are seen as future-proof investments, providing the dual benefits of growth potential and ESG alignment.
Investment Structures and Emerging Trends
Traditional PE structures are evolving to meet the demands of ESG-compliant mining. Impact funds, green bonds and blended finance vehicles are being used to structure investments in ways that support both commercial and developmental goals. These instruments allow PE firms to tap into concessional capital and development financing while aligning with ESG mandates.
According to Private Equity International (2024), while interest in mining is growing, it remains concentrated in specialized funds with deep sectoral expertise. Generalist funds may still be reluctant to enter the sector due to historical volatility, environmental risks and political uncertainty.
However, specialist managers are leveraging their technical acumen to assess project feasibility, manage risks and ensure that ESG metrics are not just box-ticking exercises, but embedded into core business models.
Challenges on the Path Forward
Despite the momentum, challenges remain. ESG reporting across Africa’s mining jurisdictions is often fragmented and lacks standardization. This presents a barrier for global investors seeking comparable, auditable metrics across portfolios. The threat of greenwashing also looms large, prompting calls for greater transparency and third-party verification of ESG performance.
Moreover, many mining projects operate in regions with weak infrastructure, limited governance capacity, or social unrest – factors that can complicate both ESG compliance and investment security. PE firms must therefore partner closely with local stakeholders, communities and governments to navigate these complexities and build trust.
Nevertheless, these obstacles also present opportunities for innovation. ESG-focused investment offers a unique chance to reshape mining operations in Africa to be more inclusive, sustainable, and efficient.
Whether through community development agreements, renewable-powered mining, or responsible sourcing certifications, mining projects that integrate ESG can position themselves as leaders in the global transition economy.
The Road Ahead
Private equity’s return to African mining is more than a capital deployment story – it reflects a strategic realignment of values, risk perceptions, and long-term investment horizons. By targeting ESG aligned projects, PE firms are positioning themselves at the forefront of the energy transition and sustainable development.
African mining stands to benefit significantly if this capital is deployed wisely. With appropriate governance, transparency and alignment of stakeholder interests, ESG-driven PE investment could become a cornerstone of the continent’s economic and environmental resilience.
In this new era, returns will no longer be measured solely by financial performance, but by the legacy mining companies leave on the communities, ecosystems and economies they touch.
*Ellis is a Director at Moore Infinity – an affiliate of the Moore Global network – helping companies to invest, scale, and lead in Namibia. Moore Global was named Network of the Year at the International Accounting Forum and Awards 2025 (IAFA 25).
