- within Accounting and Audit, Insurance, Government and Public Sector topic(s)
Africa’s mineral endowment is undeniable. It is home to approximately 30% of the earth’s known mineral reserves, many of which are necessary inputs in manufacturing processes around the world. Even more undeniable is that, for the most part, Africa’s minerals have not been used for the betterment of her people. Historically, the continent has exported most minerals as raw materials for processing abroad, leaving African countries with a limited role in the downstream segments of the mining value chain.
The demand for critical minerals and digitisation of economies is accelerating a wave of policy reforms on the continent, with governments prioritising in-country beneficiation, local content, and greater state participation. The legal foundation for this shift is clear: the sovereignty principle best articulated in the United Nations General Assembly’s Resolution 1803 on permanent sovereignty over natural resources affirms that states possess both a sovereign right, being the ultimate authority over natural resources, and a corresponding sovereign duty to exercise that authority in furtherance of their people's socio-economic welfare and the nation's broader development interests. Against this backdrop, key mining jurisdictions across the African continent are taking steps to capture maximum value from their mineral endowment. Reforms in the Democratic Republic of Congo, South Africa, Zimbabwe, Mali and Niger illustrate the breadth and direction of this continental shift.
Democratic Republic of Congo (“DRC”)
The DRC is translating constitutional sovereignty over natural resources into concrete legal and fiscal instruments that assert greater national control. In 2025, the DRC implemented an export ban in respect of cobalt. This sent shockwaves globally, with mining companies having to declare force majeure on their offtakes. In late 2025, the export ban was replaced with a quota allocation system. This system limits the amount of cobalt that can be exported per year, with the limit placed at 96 600 metric tones per year in 2026 and 2027.
The 2026 and 2027 quota is made up of an 87,000-metric-ton base quota allocated to companies and a 9,600-metric-ton strategic quota for projects of national strategic importance. The strategic quota seeks to boost the development of the DRC’s local processing capabilities and improve value addition in the country. These quotas are likely to be adjusted on a quarterly basis according to ARECOMS, as the DRC seeks to balance supply in light of demand and protect export value amid fluctuating market conditions.
The measures adopted by the DRC have underscored a fundamental tension between the country's industrialisation policy goals and its obligation to uphold existing long-term offtake agreements.
South Africa
South Africa, like other jurisdictions, is taking steps to secure greater value over its mineral endowment. One of the objects of the Mineral and Petroleum Resources Development Act, 2002 (“MPRDA”) is to promote economic growth; and mineral resources development in South Africa. Section 26 of the MPRDA currently provides authority for the Minister of Mineral and Petroleum Resources (“Minister”) to initiate or promote the beneficiation of minerals in South Africa. Historically, this section has been underutilised. In May 2025, South Africa published a draft Mineral Resources Development Bill (“Bill”), aimed at introducing various changes to the MPRDA. The Bill proposes a mandatory beneficiation regime – requiring producers to make minerals available for local beneficiation. Additionally, the Bill seeks to clad the Minister with the authority to publish conditions to ensure security of supply for local beneficiation, after consultation with the proposed Ministerial Advisory Council. This proposal has raised a mixed reaction, with concerns around potential disruption to long term commercial arrangements and South Africa’s obligations under international law.
Zimbabwe
In May 2026, Zimbabwe’s Ministry of Mines and Mining Development published the Mineral Classification and Declaration, which classifies minerals such as lithium and platinum group metals as critical minerals, and gold and coal as strategic minerals. The declaration, among other things, restricts the export of minerals listed in the schedule in raw or unbeneficiated form unless authorised under a conditional transitional plan approved by the Minister of Mines and Mining Development. It also requires that exports comply with government-approved beneficiation levels.
The declaration illustrates a widening gap between policy ambition and legal reform. While it signals the government's desire to position Zimbabwe as a strategic player in the global energy transition - emphasising beneficiation, export controls, and mandatory state participation through special purpose vehicles - it rests on no clear statutory foundation. Zimbabwe is currently still regulated by the outdated Mines and Minerals Act of 1961. The Zimbabwe Mines and Minerals Amendment Bill, 2025 proposes significant reforms to the 1961 Act, but the process to reform the principal mining legislation has been painstakingly slow.
Mali
The recent dispute between Mali and Barrick demonstrate a clear intention of increased government participation and control in mines. At the centre of the dispute was the newly adopted Mining Code of 2023 in terms of which government is entitled to greater royalties. In addition, Government has the right to take acquire a 10% stake in mining projects and the option to buy an additional 20% within the first two years of commercial production, with priority dividends. As the dispute raged, Mali placed the Loulo and Gounkoto mines under temporary provisional administration. The dispute was subsequently settled in November 2025.
Niger
Niger has moved decisively to reassert control over strategic mining assets and exports, making the sovereignty principle tangible in one of the world’s most fragile regions. In June 2025, the government assumed full control of a major Orano‑linked uranium operation, citing violations of shareholder limits; by August 2025 it had also nationalised the country’s only industrial gold mine - explicit actions to reclaim strategic leverage over high‑value resources. In the same month, Niger suspended exports of certain mineral substances, using trade measures to reset the domestic‑value proposition and tighten compliance. These steps are unfolding amid shifting regional alignments with Niger’s withdrawal from ECOWAS in January 2025 - underscoring that resource policy now sits within broader questions of sovereignty and economic security.
The message from this wave of reform is clear: the terms of engagement in African mining are being rewritten. Success in this new era will require mining companies to embrace local value creation, and African governments to exercise their sovereignty in a manner that is predictable. Those on both sides who recognise this - and act accordingly - will be best positioned to unlock the full potential of Africa’s mineral wealth for the benefit of all stakeholders, and more importantly, the African continent.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
[View Source]