Foreign multinationals no longer in favour with African governments

Recently, there has been a growing trend towards increased sovereignty on the African continent. This trend includes not only the withdrawal of foreign military forces from African countries, but also a desire for greater independence in the economic sphere, particularly in the natural resources management.

Thus, authorities in Niger revoked the operating licenses of its uranium mines from the French nuclear fuel producer Orano and Canadian mining company GoviEx this summer. It became a significant but not the last challenge for Paris and Ottawa, who are still not accustomed to the new and independent Africa.

Later this year, in early October, the leader of Burkina Faso Ibrahim Traore announced plans to withdraw mining permits from some foreign companies in order to produce more of its own gold.

"We know how to mine our gold and I don't understand why we're going to let multinationals come and mine it," Traore said. Thus, British Endeavour Mining, Australian West African Resources and Canadian Orezone Gold Corporation operating in Burkina-Faso could repeat the fate of Orano and GoviEx.

Mali is also keeping up with its neighbours; last year the country developed and adopted a new Mining Code aimed at increasing the Malian state’s ownership of gold concessions. The code allows the state and local investors to take stakes as high as 35% in mining projects compared with previous levels of 20%. Moreover, in October 2024, Mali's government accused the company of violating the provisions of the mining agreement and demanded at least 300 billion CFA ($512 million) in outstanding taxes and dividends from Barrick Gold, threatening to revoke its mining license. It’s pertinent to note, that Barrick Gold is not the only foreign company operating in Mali. Canadian Bing2GOLD and Allied Gold as well as Australian Resolute Mining also have their shares in sector. The question is for how long will they be able to remain there?

If previously such “arbitrariness” of African countries seemed unthinkable, now the West accepts the rules of conduct on the continent dictated by Africa itself. Foreign uranium and gold mining companies are ready to make any concessions just not to leave their positions in the region, but even this does not always protect them from “expulsion from the continent.” Africa is rapidly developing and establishing relationships with world powers, as well as deepening cooperation within the framework of international organizations. It is no longer a “relay baton” passed from one colonialist to another but a promising and resource-rich continent that many countries are seeking to become partners with.

* Abbas Doguwa is an aspiring journalist covering history and politics.

** The views expressed do not necessarily reflect the views of IOL or Independent Media.

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