In this article we look at three key facets of ESG for consideration in critical minerals projects:
"Across Africa, governments are revising mining codes to assert greater sovereignty over mineral resources."
Across Africa, governments are revising mining codes to assert greater sovereignty over mineral resources. Countries like Mali, Burkina Faso, Guinea and Tanzania have introduced mandatory equity stakes for state and domestic investors. Mali’s 2023 reforms, for example, require 30% local ownership, including 10% free equity for the government and 5% for local companies.¹ These provisions aim to shift the model from ‘dig and ship’ to co-ownership and value retention.²
However, land rights remain a complex and sensitive issue. In many regions, especially those governed by customary tenure systems, communities lack formal title or legal protections. This can leave them vulnerable to displacement, inadequate compensation and limited negotiating power. South Africa’s Mineral and Petroleum Resources Development Act (“MPRDA”), for instance, vests mineral rights in the state but has been criticised for disproportionately disadvantaging rural and indigenous communities.³
Efforts to address these gaps include embedding Free, Prior, and Informed Consent (“FPIC”) into national legislation, strengthening community consultation processes and aligning with international frameworks like UNDRIP and the Social License to Operate (“SLO”). These approaches are increasingly seen as essential to securing land rights and building trust between communities and mining operators.
ESG standards are now central to investment decisions and project financing. Yet in Africa, the proliferation of overlapping frameworks has created a compliance maze for operators. Many of these standards were designed in the Global North, with limited contextual sensitivity to African realities. This has led to a number of disputes, including under bilateral investment treaties.
In response, there is growing momentum for sovereign ESG frameworks tailored to Africa’s specific challenges and development goals. Morocco, for example, has proposed an African ESG framework and an Origin–Transit–Certification (“OTC”) corridor to ensure traceability, sustainability, and local value addition in mineral supply chains. (The country is also reforming tax and permit regimes to incentivise green mineral extraction and clean energy integration.)⁴ These national efforts echo the foundational principles of the AMV and its operational arm, the African Minerals Governance Framework (“AMGF”), which offer a continent-wide blueprint for embedding ESG into law and practice. Agenda 2063, the African Union’s 50-year blueprint, also sets out a vision for inclusive growth, sustainable development, and regional integration.⁵ One of its flagship initiatives, the AfCFTA, aims to create a unified market with harmonised standards and a World Trade Organisation (“WTO”) style dispute resolution mechanism.
These frameworks emphasise contract transparency, environmental accountability and community inclusion and are increasingly being adopted by governments seeking to align mineral development with national priorities.
"Implementation remains uneven. In some cases, mining has led to environmental degradation, social disruption and economic exclusion."
Mining projects can be transformative, but only if communities are meaningfully included. The African Mining Vision calls for “transparent, equitable and optimal exploitation of mineral resources to underpin broad-based sustainable growth.”⁶ Yet implementation remains uneven. In some cases, mining has led to environmental degradation, social disruption and economic exclusion.
Positive examples are emerging. In South Africa, mining companies invested nearly US$3bn in community development in 2023, supporting education, healthcare, infrastructure, and enterprise development.⁷ Tanzania has adopted an equitable sharing principle in its mining taxation, ensuring that revenues are split between the government and local communities.⁸
(In addition to project-level initiatives, countries like South Africa, Ghana and Kenya have embedded benefit-sharing mechanisms directly into mining and energy legislation, requiring companies to invest in local energy infrastructure or contribute to community development funds.)⁹
Projects like Simandou and the Lobito Corridor are also setting new benchmarks. Both embed multi-user infrastructure, local employment targets and community development plans into their structuring. These models demonstrate that mega projects can be designed not just for extraction, but for inclusive growth.
London Trainee Justin Wong also contributed to this article.
[1] https://www.ensafrica.com/news/detail/9042/mining-legislation-reform-in-mali-strengtheni
[2] https://www.ghanaweb.com/GhanaHomePage/business/Shift-from-dig-and-ship-model-to-value-addition-Jinapor-to-African-countries-1913686
[3] https://macua.org.za/wp-content/uploads/2025/08/SAHRC-and-the-MPRDA_250805_141350.pdf
[4] https://lexafrica.com/2024/02/legal-frameworks-mining-green-minerals/
[5] https://au.int/en/african-continental-free-trade-area
[6] https://miner.africa/2025/01/23/mining-communities-and-the-fight-for-equitable-resource-sharing-in-africa/
[7] https://www.miningreview.com/gold/minerals-council-mining-companies-invest-in-communities/
[8] https://resourcegovernance.org/publications/equitable-sharing-mining-profits-best-deal-tanzania
[9] https://media.business-humanrights.org/media/documents/2024_Africa_benefit-sharing_legislation_briefing_EN.pdf
