Mergers and partnerships drive Africa’s mining boom – but experts warn on long-term resilience

Industry leaders at African Mining Week 2025 warned that while mergers and acquisitions are reshaping Africa’s mining sector, long-term resilience, stronger legal safeguards, and social responsibility will be vital to sustain growth across the continent’s resource economies

A new wave of mergers, acquisitions and joint ventures is reshaping Africa’s mining industry, as companies seek scale, efficiency and stronger bargaining power in some of the world’s most resource-rich but high-risk markets.

At African Mining Week 2025 in Cape Town, a panel of legal and investment specialists said consolidation was fuelling growth across the sector, but cautioned that resilience and regulatory foresight were essential for long-term success.

According to Jude Kearney, Managing Partner at Africa-focused law firm ASAFO & Co., mergers often deliver efficiency gains and local benefits but can leave gaps when the acquirer fails to continue an acquired company’s community or operational commitments.

Zach Kauraisa, Head of Advisory at Namibian private equity firm Eos Capital, said much of the continent’s M&A activity is driven by the need to unlock synergies by cutting costs and improving revenues. In high-risk jurisdictions, he noted, consolidation can also give mining companies a more stable base and a stronger economic presence.

“In Africa’s high-risk jurisdictions, consolidation can also strengthen a company’s footprint, making it a larger contributor to government tax revenue, a bigger employer, and a more significant economic player in the host country,” he said. The result, he added, is improved negotiation power and a stronger “social licence to operate”, as well as greater capacity to reinvest in local economies.

David Roney, Chief Executive Officer of the U.S-based global law firm Sidley Austin, said the trend towards consolidation could also raise environmental, social and governance standards across the sector, particularly where larger firms acquire smaller ones. “Securing a strong social license to operate remains one of the most effective risk mitigation strategies available to mining companies,” he said.

Roney added that companies should back strong ESG credentials with legal safeguards such as investment-treaty protections, host-government agreements with stabilisation clauses, and adherence to international law, all of which can help mining groups manage political and regulatory risk.

He also pointed to growing regulatory scrutiny of cross-border investment as a factor likely to shape future deals. “We expect to see similar dynamics unfold in Africa, given the continent’s significant critical mineral reserves,” he added. “This could create a more complex investment environment.”

Kauraisa said tensions remained between governments and miners over local beneficiation — the requirement to process raw materials domestically rather than export them. “As governments increasingly call for greater in-country beneficiation, their participation in funding infrastructure makes these initiatives more viable and attractive for mining companies,” he said.

The discussions formed part of African Mining Week, organised by Energy Capital & Power, which took place in Cape Town from 1–3 October alongside the African Energy Week: Invest in African Energies 2025 conference.

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_{Main image, courtesy African Mining Week/Energy Capital & Power}