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When Burkina Faso acquired an additional 35% stake in West African Resources’ Kiaka gold mine this week, it briefly halted trading and drew global attention.
By Ryan Chigoche
Kiaka, which began production in June, produces roughly 500,000 ounces of gold annually and has already contributed hundreds of millions in taxes and royalties.
The move underscores Burkina Faso’s determination to secure a larger share of its mineral wealth. It is also part of a broader pattern under the leadership of Captain Ibrahim Traoré, who has gained admiration across the continent for his efforts to empower the Burkinabe people and assert greater economic sovereignty.
His government has already nationalised the Boungou and Wahgnion mines, now run by the state-owned Société de Participation Minière du Burkina (SOPAMIB).
Adding to that, Traoré has also launched the country’s first gold refinery and initiatives to promote local industries, reflecting a broader strategy to assert economic sovereignty and strengthen Pan-African influence.
While this wave of resource nationalism is already in full swing in the Sahel region, particularly in Mali and Niger, it is now spreading across the African continent.
In Namibia, the government recently proposed that all new mining ventures have at least 51% local ownership, aiming to ensure citizens benefit fairly and sustainably.
Tanzania secures at least 16% of new mines for free, with an option to acquire up to 50%, while Ghana reserves 10% for government stakes, taking a 13% free share in its first lithium mine, with an option for another 6%.
In neighbouring Botswana, the government can acquire 15% of mining projects, and a proposed law would require 24% citizen ownership if the state does not exercise its option.
In the case of Zimbabwe, late last year, the Permanent Secretary in the Ministry of Mines and Mining Development, Pfungwa Kunaka, said the Ministry of Mines plans to hold 26% stakes in future mining projects and negotiate for shares in existing operations.
Although these plans have not yet been fully implemented, as the country considers following regional trends, questions arise: should Zimbabwe move quickly to increase state ownership, or should it proceed cautiously, learning from neighbouring experiences?
Zimbabwe’s mineral wealth, including gold, platinum, lithium, and diamonds, is substantial.
Greater state participation could increase revenue, spur local beneficiation and processing, reduce dependence on foreign companies, and strengthen regional influence.
Yet experiences elsewhere offer caution. Burkina Faso’s aggressive nationalisations have coincided with rising security challenges, political instability, and human rights concerns.
Poorly planned measures in Zimbabwe could deter investors, exacerbate corruption, strain the economy, or trigger social unrest.
Namibia’s incremental reforms show that even modest ownership thresholds can unsettle investors if not carefully managed.
The challenge for Zimbabwe is to find balance. Gradual government stakes, incentives for local beneficiation, and stronger oversight of artisanal mining could help capture more value without destabilising the sector.
The Kiaka acquisition, Namibia’s reforms, and Zimbabwe’s proposed 26% shareholding offer lessons and warnings alike.
Resource nationalism can drive economic growth and strengthen sovereignty, but ambition must be tempered with governance, security, and investor confidence. Zimbabwe now faces a pivotal choice: follow regional trends wisely, or risk destabilising its mineral sector in pursuit of control.
