Appian targets about $2 billion for Africa but warns policy risk is driving capital away
Appian Capital Advisory plans to invest $2 billion in African mining projects but warns that policy instability is driving capital toward Latin America. The firm emphasizes that while geology is favorable in Africa, unpredictable regulatory environments hinder long-term investment.
Why it matters
This highlights the 'resource nationalism' trend in Africa and the competitive nature of global mining investment in the context of critical mineral demand.
DAKAR, Oct 28 (Reuters) – Appian Capital Advisory plans to deploy $5 billion to $7 billion globally over the next 12 to 24 months, with roughly $2 billion for Africa, CEO Michael Scherb said, though policy uncertainty is pushing investment toward Latin America.
The London-based mining private equity firm currently holds three active investments in Africa and has exited three others. Those exits include projects in Burkina Faso and Tanzania, which came amid a coup and an election crisis, respectively. Appian has four active investments in Latin America, mainly in Brazil.
African governments have tightened control over their mining sectors in recent years, revising mining codes, raising royalties and demanding greater local participation as they seek a larger share of mineral wealth.
Latin America has generally maintained more stable fiscal and permitting regimes, despite resource nationalism in major producers like Chile, Peru and Mexico.
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