Mergers, partnerships driving Africa’s mining growth, experts say

Industry experts at African Mining Week 2025 have said that mergers, acquisitions and partnerships (M&A) are reshaping Africa’s mining sector, creating opportunities for efficiency and growth, but also posing new challenges around resilience, governance and regulatory oversight.

Speaking during a panel discussion titled “Mergers, Acquisitions, and Partnerships: Building Resilience in a Consolidating Industry”, the participants highlighted how consolidation is transforming mining operations across the continent.

Jude Kearney, Managing Partner at Africa-focused law firm ASAFO & Co., said that while consolidation often delivers efficiency and benefits to host jurisdictions, it also carries risks if the acquiring companies fail to sustain or expand the operations of the entities they take over.

Zach Kauraisa, Head of Advisory at Namibian private equity firm Eos Capital, noted that mining M&A deals are frequently driven by cost-cutting and revenue optimization. He added that in Africa’s high-risk jurisdictions, consolidation can strengthen companies’ positions by making them bigger contributors to government revenue and local employment.

“This not only enhances negotiation power but also gives merged entities a stronger social license to operate and greater capacity to reinvest in local economies,” Kauraisa said.

David Roney, Chief Executive Officer of US-based law firm Sidley Austin, stressed that consolidation could improve environmental, social and governance (ESG) standards on the continent. He described a strong social license to operate as “one of the most effective risk mitigation strategies available to mining companies.”

Roney added that companies should combine this with legal protections such as investment treaties, host government agreements with stabilization clauses, and adherence to international law to withstand regulatory uncertainty in cross-border transactions.

The panel also pointed to growing regulatory scrutiny of foreign investment flows, fuelled by shifting geopolitics and industrial policies. Roney said such dynamics are increasingly shaping M&A approval processes globally, and Africa, with its vast reserves of critical minerals, is likely to see similar complexities.

Tensions between governments and mining companies over local beneficiation were also discussed. Kauraisa explained that while governments push for in-country beneficiation to create jobs and drive investment, companies have often been reluctant due to thin margins. However, he noted that government participation in funding infrastructure could make such projects more attractive.

The session concluded that while consolidation is opening new growth frontiers for Africa’s mining industry, success will depend on balancing profitability with stronger governance, legal safeguards and deeper engagement with host communities.