Development banks are backing problematic mineral projects, report finds

The International Accountability Project analyzed 77 transition-minerals projects approved by development banks between 2023 and 2025 and found more than half — and nearly three-quarters of African projects — showed evidence of actual, probable or potential harm to local communities. The projects, mostly for cobalt, copper and nickel used in renewable energy, are concentrated in the Global South while economic benefits accrue largely elsewhere.

Roughly 44% of the Sub-Saharan African projects examined involved the U.S. International Development Finance Corporation, which researchers say is expanding its footprint to compete with China's dominance in the sector. IAP staff say lending continues to flow to mining companies with poor human rights records, raising questions about what due diligence, if any, banks perform beforehand.

The DFC did not respond to a request for comment from Mongabay.

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