A surge in global gold prices is prompting African governments to tighten their control over the sector, seeking to capture more revenue and curb smuggling as disputes with foreign miners intensify.
Gold has soared nearly 50 percent this year, smashing records by climbing above $3,800 an ounce on Tuesday, Bloomberg reported. The rally is being fuelled by concerns over US President Donald Trump’s trade war with China, fears of a looming American government shutdown, and heavy central bank buying, which have all strengthened the metal’s appeal as a safe-haven asset.
With Africa sitting on some of the world’s richest deposits, policymakers are racing to ensure that more of the gains remain at home rather than slipping through illicit channels or flowing abroad.
Congo clamps down on losses
In the Democratic Republic of Congo (DRC), the government is moving to expand beyond its sole commercial mine, Kibali, run by Barrick Mining and AngloGold Ashanti.
Mines Minister Louis Watum told Bloomberg that new investment agreements could be announced soon. He estimated that 60 tonnes of gold — worth more than $7bn at today’s prices — are mined annually without any benefit to state finances.
‘We cannot allow such vast resources to keep vanishing through smuggling,’ Watum said, describing the leakage as a major threat to the country’s economic sovereignty.
Ghana focuses on artisanal producers
Ghana, the continent’s leading gold producer, is also pushing to secure more bullion from small-scale miners, who account for a significant share of output but often channel production through illicit networks.
Since winning the presidency in December, John Mahama has accelerated state purchases of artisanal output. His administration has set a target of raising $12bn in 2026 from small-scale miners, provided their declared production can double.
Officials argue that formalising artisanal mining not only boosts tax revenues but also helps regulate a sector plagued by unsafe practices and environmental degradation.
Mali escalates dispute with Barrick
In Mali, the military junta has taken a more confrontational approach. Authorities have seized management of the Loulo-Gounkoto mine, the country’s largest, after accusing Barrick of failing to pay tax arrears and comply with new legislation.
The Canadian firm has denied the allegations, insisting it has met all legal and financial obligations. The move highlights growing friction between African governments and international operators, with mining codes being rewritten across the region to claw back more benefits from booming commodity markets.
Balancing revenue and investment
While these steps reflect a broader determination by African states to tighten control of natural resources, industry experts warn that abrupt interventions risk undermining investor confidence.
‘Governments are right to want a bigger share of the pie, but sudden policy shifts can deter the very investment needed to keep production steady,’ one West Africa-based analyst told Africa Briefing.
Boom or bubble?
Much depends on whether the precious metal can sustain its extraordinary rally. Analysts caution that easing geopolitical tensions or changes in US monetary policy could soften demand, undermining governments’ ambitious revenue plans.
For now, however, the Africa gold boom is reshaping relationships between states, miners and markets, as countries across the continent tighten their grip on a resource that has rarely been more valuable.
