How transnational corporations reclaimed African mining: Three-part story

In the years following independence, African governments asserted control over their mineral resources, nationalizing mining industries and establishing state-owned mining companies. However, since the 1990s, transnational corporations have regained dominance in the African mining sector, driven by a combination of misguided economic analyses, neoliberal policies, and the criminalization of artisanal miners.

Stage One: Blaming the African State

The first stage involved blaming the African state for the continent’s economic stagnation in the mid-1970s. This narrative overlooked the impact of external shocks such as the oil price crisis and rising interest rates, which severely impacted African economies. Instead, it focused on perceived mismanagement and corruption within African governments.

Stage Two: Liberalization and Privatization

The World Bank played a significant role in promoting liberalization and privatization policies, advocating for private sector ownership and operation of mines. This led to a surge in foreign investment in African mining, particularly during the commodity price supercycle of 1999-2012.

Stage Three: Criminalizing Artisanal Miners

Artisanal and small-scale miners, who play a crucial role in the African mining sector, were labeled as “primitive,” “inefficient,” and “unproductive.” This narrative justified their displacement and exclusion from lucrative mining areas, further cementing the dominance of transnational corporations.

The Final Act: A Pushback Against Corporate Dominance

Recent policy revisions in some African countries, inspired by the Africa Mining Vision, have begun to challenge the dominance of capital-intensive, foreign-owned mining. However, these efforts fall short of reclaiming the level of resource sovereignty seen in the 1960s and 1970s.

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