Introduction: Why Mining Tax Justice Matters
Africa’s critical minerals – from copper and cobalt to lithium and nickel – are central to the global energy transition. Yet outdated mining tax laws, enforcement gaps, and fiscal loopholes continue to deprive governments and communities of the fair revenues needed for sustainable development. Mining tax justice is not merely a technical issue; it is fundamentally about equity, accountability, and ensuring Africa’s mineral wealth benefits its people.
THE DIALOGUE: CONVENING FOR SOLUTIONS
In response to these challenges, the Southern Africa Resource Watch (SARW), in partnership with the International Senior Lawyers Project (ISLP) and Open Society Foundations (OSF), convened a two-day stakeholder dialogue in Johannesburg on 26–27 June 2025. The meeting brought together over forty participants, including legal experts, civil society organisations, mining researchers, and government representatives, to examine the mining tax laws and fiscal frameworks of the DRC, Zambia, and Madagascar and to chart pathways towards more transparent, accountable, and development-focused mineral revenue systems.
COUNTRY REFLECTIONS AND REALITIES
Discussions revealed that in the DRC, the mining code remains outdated despite a recent review, with enforcement weakened by limited institutional capacity and poor inter-ministerial coordination. One participant emphasised, “In DRC, laws exist, but without implementation, they are just words on paper.
Another noted, “Our mining code has good provisions, but corruption and capacity constraints mean communities never see the benefits.
In Zambia, participants noted that mining tax law contains strong anti-avoidance provisions, yet enforcement remains minimal. Transfer pricing was identified as a critical gap, with limited monitoring despite frameworks being in place. “We have great policies, but if transfer pricing is not enforced, we lose billions each year,” warned one legal expert. Fiscal incentives were also highlighted as a challenge, with generous benefits extended to investors without sufficient guarantees of public returns.
Fiscal incentives should not come at the cost of public welfare. Investors must give back meaningfully,” urged another participant.
In Madagascar, the lack of a comprehensive mining policy framework has weakened fiscal governance and left communities without meaningful revenue-sharing arrangements. “We don’t even have a clear mining policy that aligns revenue collection with development,” said a Malagasy civil society representative. Participants highlighted that mining governance decisions often exclude local communities and civil society voices, deepening marginalisation and reducing accountability.
Communities are always an afterthought in fiscal policy, yet they bear the costs,
emphasised one speaker.
REFORM PATHWAYS AND RECOMMENDATIONS
Reflecting on these findings, participants proposed reforms centred on building institutional capacity for tax collection and transfer pricing enforcement, developing digital tax administration systems to increase transparency and efficiency, and establishing comprehensive geological surveys to strengthen negotiation positions with investors.
They also emphasised the importance of operationalising frameworks to ensure direct revenue sharing with communities and called for regional harmonisation of mining tax laws to prevent harmful competition and strengthen collective bargaining power. Discussions underscored that CSR investments must shift from corporate branding to genuine rights-based redistribution that addresses the lived realities of mining-affected communities.
Key Messages from Participants
Before we even talk about evasion, we must fix the inefficiencies that allow it.
Revenue transparency is not a favour – it is a right.
Fiscal incentives should be reviewed to ensure public return, not just investor profit.
CONCLUSION: THE WAY FORWARD
Throughout the dialogue, a consistent message emerged: enforcement remains the critical missing link, even where laws are strong on paper. Participants agreed that fiscal incentives carry high opportunity costs for African governments, and regional collaboration is essential to avoid a race to the bottom that undermines developmental goals. Ultimately, communities must see and feel the benefits of mineral wealth to build trust in governance systems and to ensure the sector contributes to equitable development.
This dialogue reinforced SARW’s commitment to advancing mining tax reforms that are rooted in community benefit, environmental accountability, and strong political will. As Africa continues to supply the minerals fuelling the world’s green transition, SARW remains steadfast in its advocacy for tax justice as a foundation for climate justice, development justice, and community justice combined.
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