Madagascar has lifted a 16-year moratorium on issuing new mining permits, reopening a sector that sits at the heart of Africa’s critical-minerals race, as investors move quickly to re-enter one of the continent’s most resource-rich but long-constrained jurisdictions. The decision, announced late Thursday by the Council of Ministers chaired by the President of the Republic, ends a suspension imposed in 2010 to address governance failures, regulatory overlap and corruption risks in the mining industry.
The government said new licences will now be granted for most minerals, although gold mining remains excluded, underscoring persistent regulatory and enforcement challenges in a sector dominated by informal and artisanal activity. Speaking at a press briefing, Mines Minister Carl Andriamparany said mining permits are a fundamental legal tool for operators and investors, arguing that reopening the licensing regime is essential for restoring confidence and reviving economic activity.
Madagascar’s moratorium was introduced in the aftermath of political crisis, when a transitional government sought to clean up a fragmented and poorly regulated mining framework. What was intended as a temporary freeze endured through multiple administrations, hampered by political instability and slow institutional reform. Over time, the suspension created a backlog of more than 1,600 permit applications, effectively choking exploration and new investment despite Madagascar’s vast mineral potential.
Pressure to reverse the policy intensified following widespread unrest in late 2025, when youth-led protests over water and electricity shortages, corruption and rising poverty escalated into a national crisis. The unrest culminated in the removal of both the Prime Minister and the President, ushering in a transitional authority led by Colonel Michaël Randrianirina as interim head of state. The new leadership has faced mounting expectations to stabilise the economy and deliver tangible improvements in livelihoods.
Officials now see the reopening of the mining sector as a key pillar of economic recovery. Analysts say clearing the permit backlog could unlock fresh foreign investment, restart stalled projects and strengthen state revenues at a time of acute fiscal pressure. Madagascar hosts significant deposits of nickel, cobalt and other minerals critical to electric vehicle batteries and the global energy transition, positioning it as a strategic player as governments and companies seek to diversify supply chains away from concentrated producers.
The policy shift has immediate implications for delayed projects. The Toliara Project, operated by U.S.-based Energy Fuels and focused on titanium and zirconium minerals such as ilmenite, rutile and zircon, was halted in 2019 amid fiscal and operational disputes. With the permit freeze lifted, developers are expected to resume technical work, re-engage host communities and advance environmental and social programmes ahead of a potential final investment decision targeted for early 2026.
Despite the broader reopening, the government has maintained tight controls on gold, citing weak oversight and stark discrepancies between official data and on-the-ground activity. Andriamparany said declared gold production over the past year amounted to just over 13 kilograms, a figure he described as negligible compared with the scale of mining nationwide. The government has acknowledged its current inability to effectively regulate the sector or enforce rigorous monitoring, opting to keep the moratorium in place until stronger controls are established.
Beyond economics, the move reflects a broader geopolitical recalibration. Madagascar is seeking to diversify international partnerships and reduce reliance on traditional Western allies by positioning itself as a reliable supplier of strategic minerals in a multipolar global economy. Whether the reopening delivers sustained investment will depend on the government’s ability to translate policy change into regulatory clarity, institutional credibility and social stability in a sector long marked by uncertainty.
For investors, the lifting of the ban signals a rare reopening of access to one of Africa’s most mineral-endowed countries. For Madagascar, it is a high-stakes test of whether long-delayed reform can finally convert resource wealth into durable economic gains.
