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The U.S. International Development Finance Corporation (DFC) has announced financing for Harena Rare Earths to advance the Ampasindava Ionic Clay Rare Earth Project in Madagascar. The investment highlights the DFC’s expanding financial engagement with Africa’s critical minerals sector as the U.S. seeks to diversify global mineral supply chains and reduce dependence on concentrated sources.
The Ampasindava project hosts one of the largest ionic clay rare earth deposits outside China, with significant concentrations of rare earth elements including neodymium, dysprosium and praseodymium. These materials are essential to the production of high-strength permanent magnets used in advanced manufacturing, electric vehicles, renewable energy technologies and defense applications. The transaction forms part of broader efforts by the U.S. to strengthen critical mineral supply chains and establish new sources of strategic industrial inputs.
The Madagascar agreement forms part of a newly announced $62.8 million DFC financing package targeting rare earth projects across four African countries, including Malawi, Angola and South Africa. With Africa forecast to account for 10% of global rare earth production by 2030, the continent is emerging as an increasingly important partner in efforts to diversify mineral supply chains and attract international capital.
Africa currently accounts for approximately 20% to 25% of the DFC’s global investment portfolio, underscoring the region’s strategic importance to the institution. The DFC’s critical minerals focus extends beyond rare earths to other materials essential to energy and industrial infrastructure. Previous investments include financing for Syrah Resources to support the expansion of its Balama graphite operation in Mozambique, while additional project approvals announced in February 2026 targeted energy resilience, economic growth and access to strategic industrial inputs across Africa.
The expansion of DFC financing comes as the U.S. has increased the institution’s investment cap to $205 billion and as African countries seek to attract greater investment into an estimated $29.5 trillion in mineral wealth. Governments across the continent are also increasingly focused on moving beyond raw mineral exports by developing local beneficiation, processing and manufacturing capacity.
Against this backdrop, African Mining Week (AMW) 2026, taking place October 14-16 in Cape Town, will bring together global investors, project developers and African regulatory authorities to examine the investment opportunities emerging across the continent’s mining sector.
Vibhuti Jain, Managing Director & Regional Head for Africa at the DFC, will participate in high-level panel discussions and executive networking sessions at AMW 2026, providing insight into the institution’s evolving investment approach and its growing portfolio across Africa. Her participation comes as development finance institutions increasingly play a role in de-risking critical minerals projects and mobilizing additional private capital.
Through dedicated project showcases and strategic discussions, AMW 2026 will examine the expanding pipeline of cross-border mineral investments and the financing structures needed to move projects from resource potential to production. By bringing together financiers, regulators, project developers and state entities such as the DFC, the event will provide a platform for stakeholders to explore partnerships that support responsible mineral development, local value creation and the integration of African resources into global supply chains.
Distributed by APO Group on behalf of Energy Capital & Power.
