African resource nationalism poses persistent risk

Subject

Resource nationalism in African mining.

Significance

Recent headlines have been awash with claims that resource nationalism is on the rise again across Africa. Governments tend to try to sell resource nationalism as integral to industrialisation, but the rules change too often for stakeholders to be credibly convinced.

Impacts

• Reduced long-term investments will lessen the economic multiplier effect associated with successful mining.
• Social development benefits associated with responsible mining will stagnate.
• Public-private investments in human capital and physical infrastructure will dissipate.