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Business Insider
a day ago
- Business
- Business Insider
Tanzania joins the list of African countries looking to take control of their gold resource
Tanzania is stepping up efforts to restore sovereignty over its gold reserves by requiring large-scale miners to process and trade at least 20% of their product locally. Tanzania plans to enhance sovereignty over gold reserves by enforcing local processing and trade requirements. This mirrors a trend in Africa toward resource nationalism, leveraging control over natural resources. Burkina Faso has transferred five gold mining holdings to its state-owned mining corporation, SOPAMIB. Both countries aim to secure economic benefits amid rising gold prices globally. The decision places the East African country among a rising number of African nations seeking to extract more value from their natural resources and gain more control over their mining sectors. The policy, which mirrors another gold bill implemented in September 2024, represents a larger move toward resource nationalism, as governments seek to benefit more directly from rising global gold prices. Tanzania's mining regulator issued a rule requiring mining firms that export gold to donate at least 20% of the commodity to the Central Bank of Tanzania (BoT). Given the complications in the global gold trade that have caused the commodity price to soar dramatically, Tanzania's push to finalize its 20% gold refining policy in the next 30 days couldn't have come at a better time. Mining behemoths like AngloGold Ashanti Plc and Barrick Gold Corporation, the second-largest producer of gold in the world are direct targets of this policy, as per Bloomberg. Companies that have contracts with the government will be required 'to allocate gold at a rate of not less than 20% of production for smelting, refining, and trading in the country,' said Finance Minister Mwigulu Nchemba in his 2025-26 budget speech on Thursday. Similarly, Burkina Faso's push to gain control of its gold mines couldn't have come at a better time. Burkina Faso's gold push under Ibrahim Traoré In June 2025, Burkina Faso formally handed over five gold mining holdings to its state-owned mining corporation, SOPAMIB (Société de Participation Minière du Burkina). This followed a decree by the country's junta leader Ibrahim Traoré, who issued it nearly a year after the procedure began in August 2023. The handover represents a significant move toward complete governmental management and operation of the country's major mining industries. These developments reflect an increasing regional trend in Africa, where governments are advocating for more ownership, value addition, and control over extractive sectors. For years, multinational mining firms have dominated African gold production, exporting raw materials and producing little local value. Burkina Faso's status as a gold producer has grown significantly over the past two decades, making it one of Africa's leading gold-producing countries.
Business Insider
2 days ago
- Business
- Business Insider
Junta-led Burkina Faso nationalises five gold mining assets
Burkina Faso has officially completed the handover of five gold mining assets to its state-owned mining company. Burkina Faso finalized the transfer of five gold mining assets to its state-owned mining company SOPAMIB. The reforms raised the country's free-carried equity stake in gold mining projects from 10% to 15%. Assets included two operating mines and three exploration licenses formerly owned by entities of Endeavour Mining and Lilium. Burkina Faso has officially completed the handover of five gold mining assets to its state-owned mining company, marking a significant step in the country's push for greater control over its natural resources. The transfer, confirmed through a decree published late Wednesday, concludes a process initiated in August 2023. As part of the reforms, Burkina Faso recently increased its free-carried equity stake in key gold mining projects from 10% to 15%, reinforcing its commitment to securing a larger share of the country's mineral wealth. To manage these newly acquired strategic assets, the government established the Société de Participation Minière du Burkina (SOPAMIB), which will be responsible for owning, operating, and overseeing key mining operations across the country, Reuters reported. The five assets transferred to Burkina Faso's state ownership include two operating gold mines and three exploration licenses previously held by subsidiaries of London-listed Endeavour Mining and Lilium. These include Wahgnion Gold SA, SEMAFO Boungou SA, Ressources Ferké SARL, Gryphon Minerals Burkina Faso SARL, and Lilium Mining Services Burkina Faso SARL. A planned sale of Endeavour's assets to Lilium had stalled, prompting the government to intervene and take control, further cementing its push for a greater national stake in strategic mining operations. Burkina Faso's status as a gold producer has grown significantly over the past two decades, making it one of Africa's leading gold-producing countries. The nation ranks fourth in gold production after Ghana, South Africa, and Sudan. Gold is Burkina Faso's most valuable export, contributing over 70% of export earnings and serving as a cornerstone of its economy. Burkina Faso follows Mali and Niger's path Burkina Faso is following the lead of regional peers Mali and Niger by tightening control over its extractive industries, aiming to boost state revenues amid a 27% surge in gold prices this year. The government has signalled plans to push ahead with nationalization efforts, arguing they will yield greater economic benefits for the country. However, the shift has raised concerns among Western investors, including Canada's IAMGOLD, Russia-linked Nordgold, and Australia's West African Resources Ltd, who worry the reforms may undermine investment certainty and project stability in one of Africa's top gold-producing regions.
Business Insider
03-05-2025
- Politics
- Business Insider
From soldier to Symbol: How Ibrahim Traoré is becoming Africa's most loved and unapologetic leader
He came to power on September 30, 2022, after conducting a military coup that deposed then-interim president Paul-Henri Sandaogo Damiba, who had himself gained office in a coup just eight months earlier in January 2022. Ibrahim Traoré's rise to power and popularity Traoré is an artillery officer who had served in the army's counterterrorism operations against jihadist insurgents plaguing Burkina Faso and the Sahel region. He led the second military coup in 2022, ousting Lieutenant Colonel Paul-Henri Sandaogo Damiba, who had previously come to power in a January 2022 coup. He and fellow officers accused the previous leadership of failing to deal effectively with the country's worsening security situation. Since assuming power, Traoré has positioned himself as a revolutionary figure using anti-colonial and Pan-Africanist language, gaining inspiration from Burkina Faso's legendary former leader, Thomas Sankara. More than just a presentation, the revolutionary leader has demonstrated his anti-colonial sentiments. In the 3 years since being interim leader of the West African country, Ibrahim Traoré has been on a rapid campaign to rid his country of any traces of Western influence. This has been done by nationalizing local wealth and expelling French soldiers from Burkina Faso, noting that they wish to tackle their security problem independently. In place of French partnerships, the radical leader has opted instead for Russian friendship. In his administration so far, these moves have gathered for him a very high (unofficial) approval rating, not just in Burkina Faso, but across Africa, and amongst Africans in diaspora. Ibrahim Traoré's economic reforms As alluded to earlier, Burkina Faso is aiming for more control over its resources, and as such, has changed its mining legislation, creating a new state mining corporation, Société de Participation Minière du Burkina (SOPAMIB). This move immediately scored points with people who have been advocating for a pro-national government where the country's wealth is distributed primarily within its borders. Burkina Faso utilized SOPAMIB to obtain control of two industrial gold mines formerly controlled by a London-listed Endeavour Mining. In April 2025, Burkina Faso's military-led government granted an industrial mining license to the Russian company Nordgold for a new gold project. This move is projected to contribute 51.5 billion CFA francs ($89 million) to Burkina Faso's state budget over its lifespan, along with an additional 7.06 billion CFA francs to the country's mineral wealth fund, according to the Council of Ministers. Earlier in April, Burkina Faso noted that it aims to gain more control over foreign-owned industrial mines, and by extension, a larger share of revenue from its natural resources. This development underscore Burkina Faso's ongoing shift toward economic nationalism under its current leadership. While the long-term outcomes remain to be seen, the push for sovereignty over natural wealth represents a significant realignment in Burkina Faso's approach to economic governance and foreign investment. Ibrahim Traoré's geopolitical stance Burkina Faso has been locked in a deadly conflict with Islamist militants since 2015, and as a result, had called for international assistance to combat the issue. However, since taking power, Ibrahim Traoré had expelled said foreign backers, noting that they had been very ineffective in dealing with the security challenge. In January 2023, the 400-member Operation Sabre, which was sent in 2009 to combat armed organizations such as al-Qaeda in the area, was given a one-month ultimatum to leave the nation. This decision was made to create a self-sustaining security infrastructure, which so far has come with some drawbacks. 2024 alone saw the country suffer 5 of the most deadly t errorist attacks in Africa. Nevertheless, the Burkina Faso leader insists on finding help outside of an institution that had historically colonized its people. Currently, Burkina Faso is looking at military cooperation with Russia, and negotiations are showing positive signs. Fuel to Ibrahim Traoré's popularity While many knew of the wave of approval trailing Artica's youngest president, his popularity as a whole became evident during the inauguration of the Ghanaian president John Mahama, on the 7th of January, 2025. During the ceremony, the Burkina Faso leader stormed the stage with a pistol strapped to his holster. This was an interesting way to come to congratulate a fellow African head of state, and as a result, sparked some banter on social media. But what truly caught everyone's attention was the round of applause that accompanied his arrival. On that day, many social media users were introduced to the revolutionary West African leader, who had organically garnered the love of many Africans. Since then, it has been an accepted rhetoric on social media that Ibrahim Traoré is one of the most pro-African heads of states in the modern era. Subsequently, Traoré's popularity would peak after Gen. Michael Langley, the head of the U.S. military in Africa, declared publicly during a U.S congressional hearing that the Burkina Faso president had become a threat to peace, using his gold to shield himself. This, of course, did not bode well with young Africans who have begun to embrace him as the ideal image of a true African leader, and more than just a conversation online, people have taken to the streets to express their love and support for the man, calling for his protection. As recently as April 30th, large crowds of demonstrators gathered at Ouagadougou's Place de la Revolution, chanting, "Long live Captain Traore!" Some of them had banners that displayed a picture of Gen. Langley with the word "slave" scrawled in red marker on his head. Others carried the flags of Russia, a key friend of the West African nation, and Burkina Faso. It also did not help that the military government of Burkina Faso reported shortly before the demonstrations that a 'major plot' to overthrow the junta leader had been foiled. This has led to whispers that some foreign groups are plotting to depose the West African leader as a result of his anti-Western initiatives. Captain Ibrahim Traoré is no longer just the leader of a small, landlocked West African nation; for some, he has become a symbol of resistance, independence, and Pan-African pride. Whether he is remembered as a liberator or a controversial figure will depend on how the tides of history unfold, but one thing is certain: Traoré's actions, as presently constructed, have sparked a continental conversation, and possibly, a movement.
Business Insider
29-04-2025
- Business
- Business Insider
Junta-led Burkina Faso to nationalise more industrial mines
Burkina Faso plans to increase its control over foreign-owned industrial mines, as the country looks to capture a larger share of revenue from its natural resources. Burkina Faso plans to increase control over foreign-owned industrial mines to capture a larger share of revenue from natural resources. Revised mining code and state-owned mining company SOPAMIB strengthen national oversight and participation. The government took control of two industrial gold mines previously owned by Endeavour Mining. Burkina Faso plans to increase its control over foreign-owned industrial mines, according to its prime minister, as the country looks to capture a larger share of revenue from its natural resources. Following in the footsteps of neighbours like Mali and Niger, Burkina Faso revised its mining code last year and established a new state-owned mining company, Société de Participation Minière du Burkina (SOPAMIB), to strengthen national oversight and participation in the sector, Reuters reported. Burkina Faso used its newly established state-owned mining company, SOPAMIB, to take control of two industrial gold mines previously owned by London-listed Endeavour Mining, in a deal finalized late last year. In a nationally televised speech on Monday night, Prime Minister Jean Emmanuel Ouédraogo announced that the government intends to further expand its control over the country's natural resources. Burkina Faso's mining sector reforms have raised concerns among investors, but the country's military-led government argues that change is necessary to maximize revenue from its vast gold reserves and revive an economy strained by years of insecurity. Gold prices have surged more than 25% this year, driven by global geopolitical tensions and erratic trade policies under U.S. President Donald Trump. In 2023, Burkina Faso, despite ongoing conflict with Islamist militants since 2015, produced over 57 tons of gold. Major international players in the country include Canada's IAMGOLD and Australia's West African Resources Ltd. However, a newly revised mining code now prioritizes local expertise and suppliers, signalling what the government calls a "revolution" in managing the country's mineral wealth. Shifting alliances Since taking power through two coups in 2022, Burkina Faso's military-led government has seen its relationships with Western allies deteriorate. Like its junta-led neighbors Mali and Niger, the country has increasingly turned to Russia for both security support and economic collaboration. Just last week, the government granted an industrial mining license to Russian company Nordgold for a new gold project.
