U.S. Development Finance Corp Plans More Direct Equity Deals in Africa to Counter China on Minerals
The U.S. International Development Finance Corp plans to increase direct equity investments, including in Africa and in critical minerals, its Africa head told Reuters. The move comes as Washington looks to counter China’s dominance of key supply chains.
The U.S. International Development Finance Corp (DFC) plans to expand its use of direct equity investments in Africa, including in the critical minerals sector, according to comments by the agency’s Africa head reported by Reuters on 9 October 2026.
The shift would see DFC take more ownership stakes in companies and projects, rather than relying mainly on loans and guarantees. Reuters reports that the agency intends to use this tool more frequently in Africa and in ventures tied to minerals that are vital for modern supply chains.
The policy sits within a broader U.S. effort to counter what officials describe as China’s dominance of key supply chains. Beijing‑linked firms play a major role in mining, processing and trading minerals used in batteries, electronics and low‑carbon technologies. By taking equity positions, DFC can align itself more closely with project outcomes and potentially secure influence over how production is structured and where it is sold.
For African governments, additional equity capital from a U.S. development institution could offer another option as they negotiate terms for exploiting their resources. It may also sharpen competition, with Chinese and other foreign investors adjusting their own offers in response.
The scale, location and partners of DFC’s first new equity deals in African critical minerals will show how ambitious this shift really is. Reactions from host governments and any parallel bids from Chinese or other firms will indicate how African leaders intend to balance rival suitors for their mineral sectors.
Sources
- OSINT