New era of sovereignty in Mali's gold sector [Business Africa]

In this edition of Business Africa, we explore the dynamic evolution of Mali’s mining sector, where the government is implementing bold reforms to strengthen its sovereignty over gold resources and rebalance relations with multinational companies.

We also examine Tanzania’s national study to boost its share in the mining industry and promote local transformation. Finally, we look at the booming real estate market in Zimbabwe, where investors are increasingly turning to property as a safe haven to protect their wealth amid economic instability.

Mali Tightens Its Grip on Gold: A Clash Between the State and Mining Giants

Mali, one of Africa’s largest gold producers, is undergoing a radical transformation in its mining sector. The Malian government is intensifying its efforts to recover between 300 and 600 billion FCFA in unpaid taxes and dividends, particularly from foreign mining giants like Barrick Gold. The recent arrest of Resolute Mining’s CEO, Terence Holohan, in November 2024 symbolizes this drive to reclaim control over the country’s natural resources. Increasing the state’s share in mining projects is part of this strategy, but it has sparked concerns among economists and industry professionals.

“The first obvious risk is a decrease in foreign investment. This could discourage investment if the state’s share increases too much,” warns Kouadio Justin Kouassi, an expert in extractive industries. He argues that a too-rapid increase in the state's share could erode investor confidence and destabilize the sector.

However, Mali also sees opportunities in this ambitious approach. Economist Boubacar Malal Bâ notes, “As long as both parties find mutual interest, they will always find common ground.” He advocates for revising agreements and fostering the emergence of "national champions" that can manage the country’s resources with greater sovereignty and efficiency.

The Malian government, firmly committed to breaking away from past practices, is determined to reshape its relations with multinationals operating within its borders. With abundant natural resources and a strategic vision, it seeks to strengthen national control over key sectors like gold while attracting new investments in a more equitable and transparent framework.

With gold production supporting the national economy and promising reform projects, the country may very well pave the way for a more fair and sustainable mining model.

Tanzania’s Mining Future: Aiming for 50% of the Country Explored by 2030

Tanzania is embarking on an ambitious exploration of its mineral resources, aiming to map 50% of its territory by 2030 to boost the economy and create more local jobs. With plans to establish transformation facilities, the country seeks to add value locally and enhance its mining sector’s impact.

This report by Daniel Kidjo delves into this strategic shift, which could significantly transform Tanzania’s economic future.

Real Estate: The New Gold Rush in Zimbabwe?

In Zimbabwe, despite inflation and the instability of the local currency, real estate is emerging as a cornerstone for securing and growing wealth. With a housing deficit of two million units and rising demand, property prices are soaring, attracting funds from the diaspora, who see the sector as a safe bet.

In this report, Keith Baptist explores the mechanics of this “rush for bricks,” reshaping the Zimbabwean real estate market with a blend of speculation and sustainable opportunities.