Resource Nationalism in Africa: A Call for Strategic Adaptation by Global Investors

By Fidel Amakye Owusu

Resource nationalism is often misunderstood as resource nationalization – but the two are not synonymous. I explored this distinction in detail a year ago, and it remains highly relevant today.

Prior to the end of the Cold War, populist leaders frequently championed the nationalization of key industries and natural resources. This often resulted in the expulsion of foreign investors – and sometimes even local private owners – from critical sectors of the economy.

In Ghana, for instance, the 1972 coup led to widespread nationalization of enterprises across multiple sectors. At the time, such moves were widely popular among citizens who believed that state ownership would ensure more direct benefits to the public.

However, by the late 1970s, these policies – along with other misguided economic strategies – precipitated one of the worst economic crises in the country’s history. Ghana was not alone.

Many African nations that embraced similar models faced comparable outcomes. The management of mines and other strategic assets was often handed over to political allies lacking the expertise or incentives to manage them effectively.

Corruption became endemic, and poor governance meant that global price volatility hit these economies particularly hard. It wasn’t until the mid-1980s that many countries began reversing course, under pressure from international financial institutions that introduced structural adjustment programs aimed at stabilizing economies and liberalizing markets.

Yet, despite some successes, these reforms came with their own set of challenges – many of which continue to affect African economies today.

Africa’s vast natural resources – many of them essential to global supply chains – will remain vital to sustaining global industries and stabilizing commodity prices. These resources are profitable, and they will continue to attract investment.

The Modern Face of Resource Nationalism

Fast forward to the present. With rising unemployment, mounting debt burdens, growing infrastructure deficits, and persistent inequality, resource nationalism has re-emerged – albeit in a new form.

This modern iteration can be loosely defined as the push by governments to exert greater control over the extraction and use of natural resources for economic or strategic purposes. Importantly, this does not necessarily mean full-scale nationalization.

Instead, we are witnessing a range of policy shifts. Some governments are seeking to renegotiate mining contracts they deem unfair.

Others are mandating the domestic processing of raw materials before export. Still others are maintaining existing agreements while introducing new legal frameworks to govern future investments.

There is also a growing emphasis on local content requirements – prioritizing local labor, suppliers, and partners in resource projects.

This assertive stance is making global investors increasingly cautious about their operations in Africa. As someone who has fielded numerous inquiries on this topic, I can say with confidence: this is not a passing trend – it is the new reality.

Driven by a youthful population eager for jobs and disillusioned with decades of economic stagnation, resource nationalism resonates across the continent.

Adapting to a New Investment Landscape

Africa’s vast natural resources – many of them essential to global supply chains – will remain vital to sustaining global industries and stabilizing commodity prices. These resources are profitable, and they will continue to attract investment.

But the investor of the 21st century must adapt to the evolving landscape to thrive.

As Charles Darwin once noted: “It is not the strongest of the species that survives, nor the most intelligent. It is the one most adaptable to change.”

Global investors operating in Africa must embrace this truth – not as a threat, but as an opportunity to build more inclusive, sustainable, and mutually beneficial partnerships.

Fidel Amakye Owusu is an International Relations and Security Analyst. He is an Associate at the Conflict Research Consortium for Africa and has previously hosted an International Affairs program with the Ghana Broadcasting Corporation (GBC). He is passionate about Diplomacy and realizing Africa’s global potential and how the continent should be viewed as part of the global collective.