Resource Nationalism Surges Across Africa as Governments Tighten Control Over Mining Sector

A growing wave of resource nationalism is reshaping Africa’s mining industry, as governments across the continent introduce new policies to increase their share of mineral revenues and strengthen control over strategic resources.

Driven by record-high global commodity prices, several African countries are revising mining laws that were originally drafted decades ago. Policymakers argue that earlier frameworks allowed foreign companies to extract significant mineral wealth while delivering limited benefits to national economies.

However, while governments aim to capture greater value from their resources, the tighter rules are also raising concerns among investors about higher costs, regulatory uncertainty, and potential delays in new mining projects.

West Africa Leads Mining Policy Reforms

The shift toward stronger state control is particularly visible in West Africa, where multiple governments have introduced new mining legislation.

Ghana recently implemented a new royalty regime based on a sliding scale ranging from 5% to 12% depending on gold prices. The government is also planning to phase out long-term mining stability agreements by 2027, which previously helped mining companies manage fiscal risks for major investments.

Mali has taken even more assertive measures under its 2023 mining code, increasing the government’s potential equity stake in new mining projects to as much as 35% and raising royalty rates from 6.5% to 10%.

The government also established the state-owned company SOPAMIM to manage state equity stakes in mining operations.

Following audits and negotiations with mining firms, Mali reportedly recovered about $1.2 billion in outstanding payments.

However, the stricter framework has also coincided with operational disruptions. Gold production in Mali fell 19% in 2025 to 81.2 metric tons after a dispute with Barrick Mining temporarily halted operations at the Loulo-Gounkoto complex.

Although the dispute was eventually resolved, the standoff reportedly cost the government millions in lost revenue, while Barrick estimated $430 million in fees and roughly $1.9 billion in lost income.

Burkina Faso Pushes Local Processing

Burkina Faso has also revised its mining legislation, introducing a sliding royalty scale and raising the government’s stake in mining projects to 15%, while allowing an additional 30% ownership for domestic investors.

The country has also mandated that at least half of mineral production must be processed locally, as part of efforts to build domestic mining industries.

Despite the stricter rules, some projects are still advancing. West African Resources successfully brought its Kiaka gold project into production in 2025 after restructuring ownership to meet the updated regulations.

Niger Takes a More Confrontational Approach

In Niger, resource nationalism has taken a more direct and confrontational form.

The government recently revoked mining and refining agreements with three companies — Comini, Afrior, and Ecomine — citing failures to meet commitments related to employment, environmental standards, and reporting obligations.

The decision follows ongoing tensions between the military government that took power after the 2023 Niger coup and foreign mining operators.

Niger has also seized control of approximately 1,000 metric tons of uranium (yellowcake) from the SOMAÏR mine, historically operated by French nuclear company Orano. The uranium, valued at around $240 million, is currently stored at a military base in the capital, Niamey.

New Reforms Aim to Attract Investment

While some reforms tighten state control, others are designed to attract new investment and support domestic processing industries.

Liberia is preparing a new mining code and plans to establish a national mining company to hold government equity in major projects. Officials say the reforms will strengthen the country’s negotiating position with investors and unlock exploration opportunities in a largely untapped mineral sector.

According to the country’s Mines and Energy Minister, about 80% of Liberia’s territory remains geologically unexplored, offering potential for new discoveries beyond iron ore.

Meanwhile, Namibia is preparing a new Minerals Bill to replace legislation introduced in 2002. The proposed law aims to expand local participation in mining while encouraging new investment.

Other countries revising mining frameworks include:

• Republic of the Congo
• Ivory Coast
• Somalia

These reforms are partly driven by rising demand for critical minerals such as lithium, cobalt, copper, and uranium used in clean energy technologies.

Investor Concerns Over Policy Stability

Despite the push for greater national control of resources, investors remain cautious about regulatory changes.

According to the Fraser Institute 2025 Annual Survey of Mining Companies, several African countries ranked among the least attractive mining jurisdictions globally in terms of policy stability and investment conditions.

Countries listed among the bottom performers included:

• Guinea
• Angola
• South Africa
• Democratic Republic of the Congo

In contrast, Botswana ranked seventh globally, reflecting stronger investor confidence in both its mineral potential and regulatory environment.

Mining Companies Adapt to New Landscape

Despite policy risks, analysts say most mining companies are adjusting rather than withdrawing from Africa.

With gold prices at historic highs, many producers can absorb increased royalties and taxes while maintaining profitable operations.

As a result, investors are likely to remain active in Africa’s mining sector — but with greater caution and more selective investment strategies as governments seek a larger share of mineral wealth.