Absa Bank Botswana Managing Director Keabetswe Pheko-Moshagane has advised commercial banks to work more closely with governments and private investors to finance mineral exploration projects. She said this could help Botswana secure a larger share of investment flowing into Africa’s growing critical minerals sector.
Pheko-Moshagane said one of the biggest opportunities for lenders lies in financing the earliest stages of mining ventures, an area often considered too risky for conventional bank funding.
“That is the first opportunity in terms of how do we play as a bank and how do we finance,” she said. “From my perspective, I believe the opportunity lies in commercial banks strategically partnering with government and investors to unlock financing exploration at the early stage of mining ventures,” she said when Speaking at the Future of Mining Summit this week.
Africa remains underrepresented in global exploration spending despite its vast mineral potential. According to African Development Bank data, the continent accounted for around 20% of the world’s landmass but attracted only 11% of global mineral exploration expenditure between 1997 and 2020.
Pheko-Moshagane said closer collaboration between governments, investors and lenders could help address the financing gap, provided appropriate risk-sharing mechanisms are put in place.
“The collaboration should largely be underpinned by defining frameworks that will enable risk mitigation and risk-sharing associated with the early stages of mining ventures,” she said.
Her comments come as competition intensifies for investment in critical minerals used in batteries, clean-energy technologies and advanced manufacturing. The African Development Bank says mining investment across Africa has been rising since 2020, driven largely by growing global demand for those resources.
Botswana is seeking to position itself as a destination for that capital, particularly as countries and companies look to diversify supply chains and secure access to strategic minerals.
“This would require a predictable policy framework, well-covered projects, modern infrastructure and innovative financing solutions that can attract long-term international and domestic capital,” she said. Pheko-Moshagane said commercial banks must also expand their ability to structure financing solutions that align government priorities with investor expectations and private-sector growth objectives.
“While the global capital is already moving towards Africa, the willingness of Botswana is to be intentional in ensuring that a greater share of that investment is directed here,” Pheko-Moshagane said.
Achieving that, she said, will require policy certainty, bankable projects, modern infrastructure and financing structures capable of attracting long-term domestic and international investment.
“This would require a predictable policy framework, well-covered projects, modern infrastructure and innovative financing solutions that can attract long-term international and domestic capital,” she said. Pheko-Moshagane said commercial banks must also expand their ability to structure financing solutions that align government priorities with investor expectations and private-sector growth objectives.
A key part of that effort should involve developing new financing platforms capable of mobilising larger pools of private capital.
“The third option that I believe we need to look at is how we develop innovative financing platforms to crowd in private capital,” she said.
“Botswana needs to move beyond traditional project financing by establishing blended finance platforms that combine public, private and development finance.”
Such platforms could include mineral development funds, infrastructure bonds, credit guarantees and institutional investment vehicles to support mining and beneficiation projects, she said.
Beyond individual mines, Pheko-Moshagane argued that financial institutions should focus on supporting entire mineral value chains, from exploration and extraction to processing, refining and manufacturing.
“The greatest economic value lies in financing integrated regional value chains, not only at the tail end of the cycle, but from exploration, mining to processing, refining and manufacturing, rather than simply extracting and exporting raw materials,” she said.
Developing regional processing hubs would create higher-value exports, improve supply-chain resilience and generate skilled jobs across Africa, she added.
Sustainability-linked finance will also be critical to Botswana’s future mining economy, according to Pheko-Moshagane.
“It is important to continue positioning Botswana for sustainable financing by mobilising green lending and innovative capital solutions that allow investment in renewable energy, climate-resilient infrastructure, SMEs and strategic industries,” she said.
She said stronger partnerships between governments, banks, mining companies and development finance institutions could help unlock the capital needed to transform Africa from a supplier of raw materials into a competitive centre for mineral processing, manufacturing and industrial growth.
