By Ntokozo Nzima
The African mining sector is facing increased regulatory reform and renewed investor interest due to global demand for the continent’s natural resources, particularly critical minerals.
African governments are aligned regarding their reforms to mining policies, introducing a range of instruments are aimed at attracting investment, protecting natural resources, and boosting local participation.
Kenya
In Kenya, there has been a measured resurgence in investment in the mining sector, aligned with global demand for critical minerals. Kenya is home to neodymium and praseodymium, niobium, titanium minerals like rutile, ilmenite and zircon, and graphite, manganese, fluorspar and copper – in demand as components of the technology and machines that facilitate the energy transition.
Despite some regulatory uncertainty, Kenya’s role as an established regional investment hub means that cross-border M&A activity in the country is expected to remain strong.
Namibia
In Namibia, risks to mining include export slowdowns and global trade tensions, but overall, the investment outlook is positive. Namibia is rich in natural resources, including diamonds, uranium, gold. Lithium is also emerging as a leader in the production of green hydrogen and solar energy. These natural resources are attracting investor interest from the European Union and the Gulf States, among others. The largest foreign investments are focused on offshore oil and gas exploration in the Orange Basin, with the mining (particularly uranium and lithium), sector also doing well.
Regulatory reforms include a focus on increasing local ownership and participation, but as yet no blanket 51% ownership requirement has been enacted. The Government has also recently appointed a new Mines, Energy and Industry Minister who will be tasked with consolidating the investment momentum and ensuring local participation in new projects.
South Africa
South Africa has seen some significant large-cap transactions in the mining sector, including the demerger of AngloAmerican Platinum (now Valterra Platinum) from Anglo American plc, which included a secondary listing on the London Stock Exchange.
The country’s removal from the Financial Action Task Force grey list in late 2025 boosted market confidence, and regulatory reforms have provided improved confidence. Cross-border deal flow remains positive. While foreign investment has moderated due to global uncertainty, local investors have been resilient, seeing opportunities where risks can be successfully managed.
Mining investment has benefitted from the global demand for platinum group metals, manganese, chromium and copper.
Regulatory frameworks include minerals and petroleum licensing, emphasising B-BBEE ownership, community obligations and Section 11 approvals, part of the Draft Mineral Resources Development Bill, 2025, which is currently in progress.
Deal flow is expected to increase in 2026, thanks in part to an improved risk profile for the country, the trends towards localisation, the rationalisation of non-core assets, and consolidation in the oil and gas sectors.
Tanzania
The October 2025 elections resulted in political unrest in the country, but low inflation and manageable debt levels point to sound economic fundamentals. Once political stability returns, M&A is expected to increase, supported by continuing policy reform.
Before the elections, the mining sector was attracting a lot of investor interest. The development of transport infrastructure such as the Standard Gauge Railway and major road upgrades has enhanced regional connectivity, boosting further investment. An interesting recent mining transaction is Perseus Mining’s USD 180 million acquisition of the Nyanzaga Gold Project and its USD 523 million development commitment.
Tanzania recently implemented a One-Stop Facilitation Centre and consolidated different investment authorities into the Tanzania Investment and Special Economic Zones Authority to assist in streamlining investment.
Zambia
Zambia’s primary source of foreign exchange comes from its copper and cobalt mining operations. Notable recent transactions include Shuka Minerals’ acquisition of Leopard Exploration and Mining and the Kabwe Zinc Mine.
Zambia will hold elections in 2026, but a decrease in M&A is not expected as a continuation of the current government is predicted, reducing political risk. Other challenges remain, including power availability and currency volatility.
Policy reforms have been introduced in the form of local content regulations, which came into effect on 1 January 2026, increased compliance with ESG standards and efforts to broaden community engagement.
ZCCM Investment Holdings (ZCCM IH), a mining investments and operations company majority-owned by the Zambian Government, is currently shifting its portfolio to focus on mining assets. This is expected to further stimulate M&A in the country.
The Minerals Regulation Commission Act, which came into force in June 2025, has, however, raised some concerns regarding property rights.
Conclusion
Mining is key to the continent’s economic growth. As regulatory frameworks develop and investment conditions stabilise, Africa’s major markets are ready for the boom in investor interest, which will hopefully lead to long-term, sustainable growth in the sector.
This analysis draws on the collective expertise of Bowmans’ legal teams across Africa
* Ntokozo Nzima, Partner, Co-head of Mining, Bowmans
