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A promising graphite venture in Uganda has caught the eye of a major African financial institution, signaling a potential surge in investment for the burgeoning project. London-listed Blencowe Resources announced this week that the African Finance Corporation (AFC) has formally expressed interest in injecting significant funds, both through debt and equity, into their Orom-Cross graphite project.
This move by the AFC, a prominent multilateral finance institution, follows years of close engagement with Blencowe and marks a pivotal step towards securing the financial muscle needed to bring the Ugandan mine to life. The AFC’s interest underscores the growing global appetite for graphite, a critical component in the rapidly expanding battery and industrial sectors.
Sources close to the deal suggest that the AFC’s extensive due diligence has highlighted the Orom-Cross project’s high-quality graphite, its competitive cost structure, and its strategic advantage as a non-Chinese source in the global supply chain. The AFC’s stated intention to participate in both debt and equity funding for the initial startup phase, targeted for 2026, speaks volumes about their confidence in the project’s long-term viability.
Adding further fuel to the fire, the AFC has also reportedly indicated an interest in securing future funding rights for subsequent expansions, aligning perfectly with Blencowe’s ambitious growth plans for the Orom-Cross site.
This significant expression of interest from the AFC complements an existing $5-million technical assistance grant secured from the US International Development Finance Corporation (DFC) in 2023. With both the AFC and the DFC now circling, Blencowe finds itself in a strong position, potentially having a clear institutional funding pathway to cover all debt and project equity financing once the definitive feasibility study is complete.
Cameron Pearce, the executive chairperson of Blencowe, was understandably upbeat about the development. “Securing this EoI from the AFC is a material milestone for Blencowe,” he stated. “The AFC is one of Africa’s most respected financial institutions, and its interest in Phase 1 funding, alongside future development phases, reinforces Orom-Cross’s long-term strategic importance.”
Pearce further emphasized the growing recognition of graphite’s crucial role in the global battery supply chain. “With the AFC now engaged alongside DFC, Blencowe is building a strong financial foundation that will position Orom-Cross as one of a select few new graphite mines advancing towards production.”
Adding to the positive momentum, Blencowe’s ongoing drilling program is expected to significantly increase the project’s graphite resource, further bolstering its economic appeal and attractiveness to potential investors.
While discussions with the AFC and other institutional partners continue to finalize the financing structure for the targeted 2026 Phase 1 development, the involvement of such significant financial players signals a bright future for the Orom-Cross project and Uganda’s burgeoning mining sector. This development could position Uganda as a key player in the global graphite market, offering a crucial alternative source to meet the increasing demand for this vital mineral.
