• Botswana now requires mining companies to cede 24% of their permits to local investors, marking a major shift toward resource nationalism in southern Africa.

• Zambia has introduced a Local Content Statutory Instrument mandating 40% of mining procurement from local suppliers.

• Zimbabwe plans to grant the state a 26% free stake in all new mining projects, part of a broader effort to increase national control over mineral wealth.

Botswana Strengthens Local Stake in Mining

Botswana announced on October 10 a new rule requiring mining companies to transfer 24% of their license holdings to local investors. The measure, effective from October 1, aims to boost local participation in a sector historically dominated by multinationals.

The policy mirrors similar resource nationalism moves seen in West African countries that form the Alliance of Sahel States (AES) — Burkina Faso, Mali, and Niger — which have also tightened control over their natural resources.

The rule comes as Botswana seeks to expand its control over diamond production, its key export industry. The government already owns 15% of De Beers, and is expected to take part in ongoing talks with Anglo American Plc, which plans to divest its 85% stake in the diamond giant, valued at around $5 billion. De Beers sources about 70% of its global output from Botswana.

Zambia Imposes 40% Local Procurement Rule

In Zambia, Africa’s second-largest copper producer, authorities have approved a Local Content Statutory Instrument compelling mining firms to source at least 40% of goods and services from Zambian companies. The regulation was unveiled last week during the Zambia Mining and Investment Insaka conference, according to local media, including Zambia Monitor.

Despite Zambia’s mining industry generating billions of dollars annually, local participation remains limited. Lawmaker Brian Mundubile recently noted that Zambians represent only 5% of the sector’s value chain. A 2022 report by the African Development Bank found that firms owned or managed by Zambian residents account for just 13% of mining-related procurement, while many “local” suppliers are subsidiaries of foreign companies.

Zimbabwe Pushes for 26% State Participation

Neighboring Zimbabwe, the continent’s largest lithium producer, is also moving to increase state participation in its mineral wealth. In December 2024, Mining Secretary Pfungwa Kunaka told Bloomberg that the government would require a 26% free stake for the state in all new mining projects.

The policy complements the country’s Local Content Strategy, first adopted in 2019, which aimed to raise local participation in key value chains from 25% to 80% by 2023. Zimbabwe is also a significant producer of platinum-group metals (PGMs) and sees greater domestic ownership as a path to broader industrial development.

Challenges to Local Empowerment

Experts warn that while such measures can strengthen resource sovereignty, their success depends on whether local firms can compete effectively. West African mining analyst Dr. Ahamadou Mohamed Maïga said the key challenge lies “not just in setting participation quotas but in building a true ecosystem of local competitiveness.”

He emphasized the need for tailored financing mechanisms to help domestic entrepreneurs secure contracts, along with technical and managerial training programs linked to universities and industry institutions.

This article was initially published in French by Emiliano Tossou

Adapted in English by Ange Jason Quenum