Political Economy of Extractive Industries in Southern Africa

The political economy of extractive industries in Southern Africa encompasses the complex interplay between states, corporations and local communities in the governance, management and distribution of mineral and hydrocarbon wealth. Across the region, governments have sought to attract foreign direct investment through licensing, fiscal incentives and public–private partnerships, while balancing revenue mobilisation with social and environmental responsibilities. This dynamic has shaped the emergence of regulatory frameworks that oscillate between liberalisation and resource nationalism, reflecting the enduring legacies of colonial concession regimes and post-independence developmental states. In many contexts, extractive projects are anchored in enclave models that generate export earnings but often bypass domestic value chains, engendering debates on beneficiation, local content and equitable growth. Labour relations in mines and oil fields exhibit pronounced segmentation, with distinctions between artisanal and industrial operations, expatriate and local workforces, and skilled and unskilled labour, all of which reinforce social hierarchies and inform struggles over wages, working conditions and community benefits. Environmental impacts, from land degradation to water stress and involuntary resettlement, have galvanised civil society and community movements, prompting calls for transparency initiatives, strengthened institutional capacity and more inclusive negotiation processes. The continuing global push for energy transition minerals has added a further layer of strategic importance, positioning Southern Africa as a critical frontier for the extraction of cobalt, graphite, lithium and rare earth elements, with attendant questions over cumulative socio-environmental impacts and long-term sustainability.

Research from Nature Portfolio

No recent Nature Portfolio content available.

Political Economy of Extractive Industries in Southern Africa publication trend

The graph below shows the total number of articles in political economy of extractive industries in southern africa across all publications each year (not limited to Nature Index journals).

Technical terms

Enclave model: A form of extraction project that operates as a semi-autonomous zone with limited integration into the national economy, centred on export of raw materials.

Resource curse: The paradox whereby countries rich in natural resources tend to exhibit lower economic growth, weak governance and greater conflict.

Foreign direct investment (FDI): Long-term investment by an overseas entity in a domestic enterprise, often involving management control or significant ownership.

Labour market segmentation: The division of labour markets into distinct sub-sectors or groups, each with different job conditions, wages and mobility.

References

1. Understanding the cumulative socioenvironmental impacts of energy transition-induced extractivism in Mozambique: The role of mixed methods. Journal of Environmental Management (2023).
2. Locus of control over global mine production– developments between 1985 and 2018 against a historical background. Mineral Economics (2024).
3. Reading Mozambique’s mega-project developmentalism through the workplace: evidence from Chinese and Brazilian investments. African Affairs (2022).