Mozambique is set to tighten its grip on the mining sector with sweeping reforms that would grant the state a minimum 15 per cent stake in all mining projects and prohibit the export of unprocessed minerals.
The proposed changes, contained in a draft revision of the country’s mining law scheduled for parliamentary debate on May 7, signal a broader policy shift aimed at increasing state participation and retaining greater value from the country’s vast mineral resources.
Authorities say the current legal framework, which has been in place for more than a decade, contains significant gaps that limit the government’s ability to maximise revenue from the sector.
According to local reports, the draft legislation mandates that the state, through the national mining company Empresa Nacional de Hidrocarbonetos (ENM), will hold at least a 15 per cent stake in mining ventures, with provisions allowing for higher participation where necessary.
The reforms also introduce incentives for domestic mineral processing, stricter regulatory oversight across the mining value chain, and the creation of designated zones for artisanal mining activities.
In addition, licensing rules are set for overhaul, with exploration permits expected to run between two and five years, while mining concessions could extend up to 25 years. The draft further provides that 10 per cent of mining revenues be channelled into a dedicated fund for local development.
President Daniel Chapo said the measures are designed to ensure that the country’s natural resources serve as “lasting engines of economic and social development,” adding that mineral wealth must translate into job creation, support for local enterprises, and improved public services.
Mozambique’s policy direction reflects a broader continental trend, as African governments increasingly move to reassert control over natural resources after decades of export-driven extraction models.
Across West Africa, countries aligned under the Alliance of Sahel States — including Mali, Burkina Faso and Niger — have led efforts to revise mining codes, raising state ownership, taxes and local participation.
In Mali, a new mining code has increased state and local ownership stakes to as much as 35 per cent, triggering disputes with multinational operators, while a sector-wide audit enabled the government to recover an estimated $1.2 billion in arrears.
Burkina Faso has gone further, moving to nationalise foreign-owned gold assets and increase state participation in the sector, which contributes roughly 16 to 17 per cent of its gross domestic product.
The trend extends beyond the Sahel. Ghana, Africa’s leading gold producer, has tightened regulations around mining activities, including restrictions on operations in forest reserves and stricter oversight of small-scale mining.
At the centre of these reforms lies a persistent economic imbalance: while Africa holds some of the world’s most valuable mineral reserves, it captures only a limited share of their value.
In the Democratic Republic of the Congo, which accounts for more than 60 per cent of global cobalt supply, mineral exports generate over 95 per cent of export revenues. However, most value-added processes — including refining and battery manufacturing — are carried out outside the continent.
By increasing state participation and restricting the export of raw materials, governments are seeking to reverse this pattern, encourage local processing, and strengthen industrial capacity.
With global demand rising for critical minerals tied to energy transition and advanced technologies, African countries are increasingly positioning their resource endowments not merely as commodities, but as strategic assets in a rapidly evolving global economy.
