U.S. Development Finance Corp. funds Madagascar rare-earth mine to curb China’s grip

The United States’ Development Finance Corporation has pledged up to $4.8 million to back the Ampasindava rare-earth project in Madagascar, marking a new push to dilute China’s control over Africa’s critical minerals. This financing could pave the way for further investment in a mine that extracts materials essential for high-performance magnets used in defense manufacturing. The initiative aligns with the Trump administration’s “trade-not-aid” policy, which promotes private-sector driven investment in African resource sectors.

Experts acknowledge the U.S. is unlikely to surpass China as the leading foreign investor, but they view the shift as a welcome move away from previous paternalistic aid models. “There is definitely a sentiment now that the Americans are back, in a big way, and in a way that means ‘let’s talk business,’” said Christopher Vandome of Chatham House. The project highlights intensifying geopolitical competition over strategic mineral supply chains.