Rebecca Manzi Tanzania mandates 20% gold refining locally as African nations reclaim mining control. Burkina Faso nationalizes concessions. Major shift from foreign extraction model
Tanzania has joined a growing chorus of African nations determined to reclaim control over their gold resources, imposing stringent new rules on major mining companies operating within their borders. The government has introduced regulations requiring large-scale producers to refine and trade at least 20% of extracted gold directly within the country—a move that signals a dramatic shift in how resource-rich nations approach their mineral wealth.
This policy fits into the broader trend of resource nationalization sweeping across the continent, driven by governments eager to capture more economic benefits locally while gold prices soar to record highs. The mechanics are straightforward yet significant: companies exporting gold must now reserve at least 20% of the precious metal for Tanzania’s Central Bank, bolstering national reserves while strengthening the country’s economic sovereignty.
It’s worth noting that this isn’t entirely unprecedented territory for Tanzania. The new approach builds upon similar legislation passed in September 2024, with the clear objective of increasing local value-added activities tied to mining operations. Rather than simply shipping raw materials overseas, as has been the norm for decades, the government wants to see more of the economic benefits stay home.
Major players face new reality
Mining giants like AngloGold Ashanti Plc and Barrick Gold Corporation—household names in the global gold industry—will be directly impacted by these regulatory changes. As Finance Minister Mwigulu Nchemba emphasized during his 2025-26 budget speech, all companies bound by state contracts must comply with these new conditions. There’s no wiggle room here; compliance isn’t optional.
The implications extend beyond simple export quotas. This regulatory shift is designed to nurture Tanzania’s domestic refining sector, potentially creating jobs and technical expertise that could serve the country for generations. It’s a calculated gamble that local capacity building will prove more valuable than the immediate revenue from raw gold exports.
Burkina Faso follows the same path
Tanzania isn’t alone in this political pivot. Burkina Faso, under military leader Ibrahim Traoré’s guidance, has decided to nationalize five gold concessions, transferring them to the state-owned company SOPAMIB. The measure was formalized this month, nearly a year after legal proceedings began, representing yet another example of how African governments are working to reclaim control over the continent’s mineral wealth.
The timing isn’t coincidental. With gold trading at approximately $2,330 per ounce (around €2,180 per ounce), governments are increasingly questioning why foreign companies should reap the lion’s share of profits from resources that belong, fundamentally, to their citizens. Burkina Faso’s move is particularly significant given that the country ranks as Africa’s fourth-largest gold producer, with the sector accounting for more than 70% of national exports.
These changes mark a turning point in an industry long dominated by foreign multinationals that have often left minimal economic benefits for producing countries. The traditional model—where international companies extract raw materials and process them elsewhere—is being challenged by a new generation of African leaders who believe their nations deserve a bigger slice of the pie.
The shift reflects broader geopolitical currents as well. African nations are increasingly assertive about their sovereignty over natural resources, viewing mining partnerships through a more critical lens than previous generations of leaders might have. This isn’t necessarily anti-foreign investment sentiment, but rather a more sophisticated understanding of how to structure deals that benefit local populations.
Africa now appears committed to developing its resources domestically, promoting local employment, investment, and infrastructure development. The question isn’t whether this trend will continue—it’s how quickly other resource-rich nations will follow suit and what impact this will have on global mining operations that have grown accustomed to more favorable terms.
For international mining companies, the message is clear: the days of extracting African resources with minimal local benefits are numbered. The new paradigm demands genuine partnerships that create lasting value for host countries, not just their foreign investors.
