Why Can’t African Countries Break Unfair Mineral Treaties? (And How Some Are Trying)

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African land is blessed with abundance of  natural wealth like, gold, diamonds, oil, cobalt, copper, and rare earth minerals.

But the continent that holds the world’s richest resources has most of the poorest people.

This has been caused by hurtful mineral treaties and contracts, signed during or after colonial rule, that  benefit foreign companies, mostly from Europe, North America, and, more recently, China. 

These agreements  in most cases confine African countries into unfair revenue-sharing, limited sovereignty, and environmental degradation. 

So why can’t these nations break these contracts and use their own resources as they wish?

1. Binding Contracts and Investor Lawsuits.

Most of these mineral treaties are long-term contracts, about 25 to 99 years, and include Investor-State Dispute Settlement (ISDS) clauses. 

That means if a country tries to change the terms, the company can sue in international courts. These courts are mostly based in London or Washington.

For example, when Tanzania tried to change its mining laws, mining Companies like Acacia (a subsidiary of Barrick Gold) threatened international arbitration. Countries fear to face penalties, which are not affordable.


2. Economic Dependency.

African nations depend heavily on mineral exports for foreign exchange and national budgets. 

Withdrawing from multinational corporations could lead to loss of employment opportunities, tax revenue, and investor's confidence.


3. Debt and Diplomatic Pressure.

International lenders like the IMF and World Bank, and the donor countries, discourage or oppose resource nationalization. 

African countries that attempt nationalization, may face sanctions, blockage of aids, or credit downgrades, making economic survival  harder.


Despite the risks, few African countries have tried to reclaim control of their resources.

1. Tanzania 

Under the late President John Magufuli, Tanzania tried by declaring that mining companies were cheating the country. 

In 2017, the government banned the export of unprocessed mineral ores and taxed about $190 billion bill on Acacia Mining.

Magufuli passed laws to allow the government to renegotiate contracts and claim a 16% stake in mining operations.

Barrick Gold agreed to a new agreement, giving Tanzania a stake and shared profits. But Tanzania also faced a decresae in foreign investment and slower mining growth.


2. Democratic Republic of Congo (DRC) – The Cobalt Battlefield.

The DRC has about 70% of the world’s cobalt reserves, which is very important for electric vehicles and technological devices.

In 2018, the DRC government revised its mining laws, to raise taxes on "strategic minerals" and refused to abide by the terms in older contracts. Big companies like Glencore and China Molybdenum protested but stayed.

The country increased revenue, but corruption and weak enforcement denied the citizens the deserved share.


3. Zambia 

Zambia took control of Mopani Copper Mines from Glencore and increased taxes on mining firms.

The public was supportive to the government, but the government lacked the technical and financial resources to run the mines effectively.


4. Zimbabwe 

In the 2000s, Zimbabwe passed a law requiring 51% local ownership of foreign mining companies. The goal was to empower Zimbabweans. But the policy led to  loss of capital, employments, and decline in production.

Later on governments started compaign to attract investment again.


5. Guinea 

Guinea has the world’s richest untapped iron ore deposit, 'Simandou'. The government, has tried to regain control for many years and force companies to process the ore locally instead of exporting raw material, but the project has been delayed by legal issues, infrastructure problems, and political changes.

Currently China has a big share in the resource but, but Guinea still struggles to utilize the resource for national development.


Strategies to make Afican countries benefit;

1. To build Legal and Technical Capacity.

African countries need trained lawyers, economists, and geologists who understand the contracts and the true value of their resources.

2. Regional Collaboration.

If countries like DRC, Zambia, and Botswana unified on cobalt or diamond pricing, they could gain more power, like OPEC with oil.

3. Value Addition and Local Processing.

Exporting raw materials means most profits go abroad. Therefore by investing in refineries, smelters, and battery factories, these countries will create employment opportunities and wealth locally in African countries.

4. Transparency and Anti-Corruption Measures.

Poor and irresponsible leadership in African countries has resulted into even the best contracts failing to benefit the African people. Citizens must demand accountability through audits, public reporting, and civic pressure.

5. Smart and Fair Negotiations.

The African governments should consider, renegotiating contracts with better revenue sharing, environmental protections, and community benefits.


Africa's natural resources can be the key to its prosperity, if it is well managed. Although history and external pressures have limited the continent’s control, good leadership, regional unity, and a focus on transparency can help to change the rules and ensure that Africa's wealth benefits its people.


Related topics:

Political, social and economic changes in African countries after Independence.


Why don't countries just print their own money?

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