Mozambique is seeking greater authority over its extensive mineral resources, putting forward major changes that would give the government at least a 15% share in all mining ventures while prohibiting the export of raw minerals.
The proposed update to the mining legislation, scheduled for parliamentary discussion on May 7, signals a wider policy direction focused on boosting government involvement and keeping more economic benefits within the country.
Officials argue that the existing law, which has been in effect for more than ten years, has shortcomings that prevent Mozambique from fully benefiting from its natural resources.
A report by 360Mozambique indicates that under the new proposal, the state, through the national mining firm ENM, would secure a minimum 15% interest in projects, with room to increase its stake.
The reforms also include measures to encourage local mineral processing, tighter regulation across the mining sector, and the creation of specific areas for artisanal mining.
Changes to licensing are also part of the plan, with exploration rights set to last between two and five years and mining leases running for up to 25 years. Additionally, 10% of mining income would be allocated to a special fund for community development.
President Daniel Chapo stated that the changes are intended to turn natural resources into sustainable drivers of economic and social progress, emphasizing that mining wealth should generate employment, support local businesses, and finance public services.
Resource nationalism gains ground in Africa
Mozambique’s approach reflects a broader continental trend, as more African nations move to reclaim control over their mineral resources after years of export-focused extraction.
In West Africa especially, members of the Alliance of Sahel States, including Mali, Burkina Faso, and Niger, have taken the lead by revising mining laws to boost government ownership, taxation, and local involvement.
Mali, for instance, updated its mining code to raise state and community ownership from 20% to as much as 35%, sparking tensions with international companies, while a sector-wide audit enabled the recovery of about $1.2 billion in unpaid revenues.
Burkina Faso has taken even stronger steps by nationalising foreign-owned gold mines and increasing government stakes, with the mining sector contributing roughly 16–17% to its GDP.
The shift extends beyond the Sahel region. Ghana, the continent’s leading gold producer, has also strengthened mining regulations, including banning activities in forest reserves and tightening oversight of small-scale operations across much of the country.
At the heart of these developments is a clear economic imbalance: despite holding vast mineral wealth, Africa captures only a small share of its true value.
In the Democratic Republic of the Congo, which produces more than 60% of the world’s cobalt, mineral exports make up over 95% of export earnings, yet most processing and higher-value activities occur outside Africa.
By raising state participation and limiting the export of unprocessed minerals, governments are aiming to correct this disparity. The objective is to encourage domestic processing, advance industrial growth, and retain more income within national economies.
As global demand rises for key minerals essential to energy and technology, African countries are increasingly viewing their natural resources not just as trade goods, but as strategic assets in a changing global landscape.