According to a report by Africa Net on August 26, Africa is rich in mineral resources. It is estimated that Africa accounts for 30% of the world’s mineral resources, including bauxite, cobalt, copper, gold, graphite, iron ore, manganese, nickel, phosphate, platinum, and many other rare metals and elements. Since 2000, the extraction of natural resources has contributed to 35% of Africa’s economic growth. Nevertheless, multinational corporations and international investors remain cautious, citing several valid reasons, such as infrastructure challenges—including electricity and transportation—as well as issues related to education, law, and politics. In other words, while challenges do exist, opportunities far outweigh them, and African leaders are well-prepared to turn these potential opportunities into tangible outcomes.

The extractive industries currently account for 10% of Africa’s economic activity and represent 20% of the continent’s total export revenues—second only to the highly profitable oil and gas sector. There is no doubt that the extractive industries will continue to grow rapidly in the coming years.

This article focuses on attracting international investment to the best-performing countries in Africa’s mining sector.

Namibia

With its top-quality mineral resources, Namibia is one of the world’s five largest producers of diamonds and uranium. Although lower commodity prices have slightly impacted the country’s tax revenues, they have not derailed the nation’s spending plans—government officials and industry leaders remain committed to maintaining most of their planned investments in the mining sector (and have even added some new projects).

Namibia’s Minister of Mines and Energy continues to maintain that the sector will function effectively under decentralized and collaborative leadership. The recent Mining Expo organized by the Namibian Chamber of Commerce exemplifies this idealism: every mining and exploration company in Namibia is a member of the Chamber, ensuring that the industry speaks with one unified voice. During their speeches at the Expo, government and business leaders underscored their strong commitment to active engagement.

The $400 million Otjikoto gold mine project, built by the Canadian company B2Gold, and the $2 billion Husab uranium mine project are both developed in partnership with local stakeholders. The joint ventures, each holding a 50% stake, represent a collaboration between private-sector companies and the government—emulating Botswana’s De Beers diamond-mining model—and underscore the strong leadership of industry giants alongside government guidance.

Botswana

Botswana is the most popular country among investors. Its long-standing diamond mining industry is similar to that of Namibia. The country’s joint venture, De Beers Mines, is often held up as a model example, and the government has been able to engage with multinational diamond companies. No longer does the government sell all of De Beers’ diamonds; instead, the government-owned Okavango Diamond Trading Company—a growing state entity—now handles diamond sales. Currently, this company accounts for roughly 14% of total diamond purchases. All of this underscores how diamond production has driven economic growth over the past decade, typically accounting for as much as 70% of the country’s total export revenues.

The government and mining sector leadership are diverse, and the government’s financial support has been strengthened. In a history marked by both transparency and complexity in business and politics, it is crucial to encourage various companies to explore new models. The nation aspires to become a hub in Southern Africa—particularly in the sense of emerging as a mining and financial hub. Botswana’s competitiveness relative to its neighbor South Africa may simply stem from the fact that Botswana has already established itself as a formidable competitor.

Although Botswana boasts one of Africa’s largest coal reserves, its infrastructure must be improved to support its ambition of becoming a global coal producer. Most importantly, the country needs a railway line running through its central region—after all, Botswana is a landlocked nation. It is precisely because of this emerging economy’s substantial potential that investments are being made to propel it forward. In many respects, this will not only boost the coal industry and increase the country’s revenue but also ensure that Botswana becomes an energy hub, exporting energy to countries like South Africa, which face energy shortages.

Zambia

Over the past few years, Zambia has proven itself to be one of the most politically stable countries in Africa. Following the death of President Michael, Scott—Zambia’s first white president—served as acting president, and the special election held in January 2015 for Edgar did not disrupt the country or damage its reputation.

The investment community is eager to pour capital into the economy, yet many business owners are resisting. With growth rates of 5.6% in 2013 and 6.5% in 2014, the country will endure its toughest year for some time ahead, as agricultural conditions led to a slowdown in 2015 due to adverse weather and persistent power outages.

Understandably, officials have shifted their attention to the mining industry. However, the price of the country’s largest export mineral—copper—has been steadily declining and could hit a new low by year-end. Importantly, the country should leverage its copper wealth, especially in anticipation of a future price rebound, to diversify its mining sector.

According to plans from previous years, the country’s mining sector was projected to account for 75% of the nation’s total export revenue in 2015. However, these statistics should not obscure the country’s extensive mineral resources—including coal, gemstones, gold, lead, and zinc. Although the country lacks the capacity to become a global leader in coal production—particularly due to inadequate infrastructure—and electricity may pose a critical obstacle to national development, improved licensing procedures could help safeguard gold resources.

Mozambique

Mozambique is a country renowned for its tranquil beaches and a growing skyline of skyscrapers. In the coming years, its production levels could leap significantly from their current levels. The country is expected to become one of the world’s top 10 coal producers, with coal output reaching nearly 42 million tons in 2017. Substantial coal reserves are located in Tete Province and the Zambezi River region. Recently, Rio Tinto sold its core coal business to India’s private International Coal Ventures Ltd. (ICVL). There are also other factors at play, including inadequate infrastructure and the ensuing challenges in realizing profits. Vale of Brazil has voiced similar complaints about its coal mining operations as well.

As a result, infrastructure development has risen to a prominent position on the national agenda. Given that this process has been hampered by Portugal’s colonial legacy and a vicious civil war, it’s hardly surprising that infrastructure costs are so high—and that private-sector commitments to infrastructure investment have surged dramatically, reaching an estimated $35 billion by 2020. The demand for electricity is growing at a rate of 15% annually, and more than half of Mozambique’s electricity exports go to South Africa, leaving Mozambique able to meet only 40% of its own electricity needs. Transportation represents the second-largest challenge after electricity. Transporting workers and goods can be extremely costly.

In 2015, coal will account for 8% of the country’s GDP, and exceeding this target is achievable. Although coal prices are currently at a relatively low level, the expansion of gold and aluminum production will, in the short term, help offset the slow growth in coal output.

Guinea

Guinea is a complex and emotionally charged country, one that has been economically and emotionally devastated by the Ebola epidemic. Yet it is also a legitimate and formidable player in the mining sector. Although it ranks as the least developed country on this list, Guinea holds one-third of the world’s bauxite reserves and is home to Simandou—the world’s largest untapped iron ore project. The underdeveloped Simandou project, valued at roughly 25 billion U.S. dollars, requires close collaboration with the government if it is to fully realize its potential.

Economic growth, projected at 4.5% in 2014, had fallen to 0.6% by the end of 2014. The outlook for 2015 is 0.9%. However, the target for 2016 is GDP growth exceeding 4%. Infrastructure investment—specifically, over 30 bridges and tunnels along a 650-kilometer railway line—will require crucial cooperation with multiple countries.