By Thabo Mbeki Jr., African CEO Magazine
Madagascar has officially reopened its mining sector to new investment, lifting a suspension on permit issuance that had been in place since 2010. The landmark decision, approved by the Council of Ministers on January 27, authorises the resumption of mining title approvals nationwide and marks the end of a 16-year freeze that stalled exploration and development across the island nation.
The suspension was originally imposed during a period of political transition, with authorities citing rampant speculation in mining permits as justification. Its removal now signals a new chapter for Madagascar’s resource economy, following the adoption of a revised mining code in 2023 designed to strengthen oversight and improve transparency in permit management.
According to Madagascar’s latest Extractive Industries Transparency Initiative (EITI) report, published in December, more than 1,650 mining permit applications remain pending. While officials have yet to announce a timeline for processing these requests, the government insists that the new framework will address longstanding weaknesses in the mining cadastre and provide greater legal clarity for investors.
Madagascar is rich in strategic minerals such as nickel, cobalt, graphite, and rare earth elements—resources increasingly vital to global clean energy and battery technologies. Yet, despite this potential, the mining sector contributes less than 5% to the country’s GDP. Authorities hope the reopening will unlock greater economic value, reduce speculative behaviour, and ensure licensed projects advance to exploration and production.
Several companies stand to benefit, including Harena Rare Earths, which has been awaiting approval to develop a rare earths project. Analysts caution, however, that the real test lies in effective administration: clearing the backlog of applications and enforcing timelines will be critical to restoring investor confidence.
Madagascar’s move aligns with broader trends across Africa, where governments are recalibrating mining policies to balance state control with investor appeal amid intensifying global competition for critical minerals. For investors, the lifting of the permit freeze represents a significant policy shift—though its ultimate impact will depend on how swiftly and consistently the new rules are implemented.
