A foreign investor can spend months negotiating a local mining venture, only to find that the licence category does not permit foreign participation. That distinction matters most in small-scale mining, where “artisanal”, “small-scale” and “primary” rights carry very different legal limits.
Our mining consultants Africa, licensing and setup support helps investors test the licence route before they commit capital, sign shareholder agreements or begin environmental work. As of October 2026, Zambia and Botswana provide defined routes for some foreign participation. Ghana, Kenya and Tanzania impose restrictions that require a different investment strategy.
Start With the Licence Category
Do not treat small-scale mining as one legal category across Africa. Each jurisdiction defines the right, its ownership rules and its operating limits through its own mining law and regulator.
In Zambia, a Small-Scale Mining Licence can include foreign investors through an eligible company. Zambia’s Artisanal Mining Right cannot. In Tanzania, a Primary Mining Licence serves the small-scale segment, but foreign investors cannot hold or conduct mining under that licence.
This is the step investors skip most often: they confirm the mineral deposit, then ask about ownership. We recommend reversing that order. First identify the licence class that fits the proposed operation. Then confirm whether the intended shareholder structure qualifies.
A practical screening sequence
1. Define the mineral, proposed area and annual production plan. Botswana’s Minerals Permit, for example, excludes diamonds and limits the area and production scale.
2. Identify the statutory licence category. A “small-scale” proposal may fall under a permit, licence or artisanal right depending on the country.
3. Check citizenship, residence and local equity requirements before company registration.
4. Confirm the supporting approvals. Environmental approval, tax clearance, surface rights and local-content plans often sit outside the mining application itself.
5. Build the investment structure around the legal route, rather than relying on a nominee arrangement that may fail regulatory scrutiny.
Botswana: A Defined Minerals Permit Route
Botswana allows foreign participation in a Minerals Permit, its small-scale mining instrument, subject to conditions set by the Government of Botswana. A non-citizen individual must have lived in Botswana for at least four years. A company applicant must be incorporated and carry on mining business in Botswana.
The permit applies where fixed assets remain below BWP 1,000,000, annual production does not exceed 50,000 tonnes and the mining area does not exceed 0.5 km². These limits matter because a project that exceeds one of them may need a different mining right before operations begin.
The application requires Form VII, surface rights, environmental approval and archaeological clearance. The government states a processing time of 15 working days, but that period does not remove the need to prepare the supporting approvals properly.
Botswana excludes diamonds from the Minerals Permit. Investors should not use this route for diamond projects, even where the proposed mine falls below the stated asset, production or area limits.
Industrial-mineral permits generally remain reserved for citizens. The Minister may grant a permit to a non-citizen where the public interest supports it. That is an exception, not a structure an investor should assume will apply at the planning stage.
Illustrative example: a Botswana quarry proposal
Take a foreign-owned company assessing a 0.4 km² industrial-mineral quarry with proposed fixed assets of BWP 850,000. The physical scale fits the published Minerals Permit limits, but industrial minerals raise the separate citizen-reservation rule.
The company should not register a Botswana vehicle and treat the permit as assured. It should first test whether a citizen-led structure is required or whether facts support a public-interest application to the Minister. The cost of getting that sequence wrong is not a permit fee, it is time spent structuring an enterprise around a right it may not receive.
Official source reviewed: Government of Botswana, Minerals Permit service conditions, 2026.
Zambia: Foreign Participation Through a Local-Equity Company
Zambia offers the clearest route in this comparison for foreign participation in a Small-Scale Mining Licence. The Ministry of Mines and Mineral Development Mining Cadastre Department requires an applicant company to hold at least 5% Zambian equity. Subject to other approvals, foreign investors may therefore hold up to 95%.
The licence term requested cannot exceed 10 years. That term should shape the mine plan, financing assumptions and rehabilitation commitments from the outset.
The Mining Cadastre Department requires Form I, prospecting results, a mining plan, a Zambia Revenue Authority tax-clearance certificate, an approved Environmental Project Brief, local-employment and local-business proposals, and a pegging certificate. Each document answers a separate regulatory question: whether the deposit exists, whether the mine can operate responsibly, and whether the enterprise will meet tax and local-participation expectations.
Do not confuse this route with Zambia’s Artisanal Mining Right. The Artisanal Mining Right is reserved for indigenous Zambians and registered cooperatives. A foreign investor who relies on an artisanal right because the proposed operation is small will start from the wrong legal category.
Illustrative example: a Zambian copper prospect
Consider a foreign investor with a Zambian company that proposes a small copper operation and intends to hold 95% of the shares. The structure can meet the published equity condition if Zambian shareholders hold at least 5%, but the investor still needs an approved Environmental Project Brief, a tax-clearance certificate and the other listed documents.
The common mistake is to treat 5% local equity as the whole application. It is only one condition. Before submitting Form I, the company should align its prospecting evidence, mining plan, pegging certificate and local-employment proposal so that the Mining Cadastre Department receives a coherent file.
Official sources reviewed: Ministry of Mines and Mineral Development Mining Cadastre Department, 2026 requirements; Zambia Revenue Authority tax-clearance requirement.
Ghana: Small-Scale Mining Is Not a Foreign Entry Route
Ghana does not permit foreigners to obtain a Small-Scale Mining Licence. The Minerals Commission states that an applicant must be a Ghanaian citizen who is at least 18 years old, and the licence is reserved for Ghanaians.
The licence runs for five years and is renewable. That renewal feature does not create an entry route for foreign shareholders or foreign operators.
Ghana’s Minerals and Mining Act, 2006, as amended by Act 900 in 2015, sets serious consequences for a foreigner who undertakes small-scale mining unlawfully. The penalty can include a fine from 30,000 to 300,000 penalty units, imprisonment for up to 20 years, or both.
A local nominee does not solve this issue. Where the underlying arrangement gives a foreign investor the prohibited small-scale mining interest or operational role, the structure can create legal and governance risk for every party involved.
For a foreign investor considering Ghana, do not bother pursuing a small-scale licence application. Seek advice on mining categories that lawfully accommodate foreign investment before signing an acquisition, farm-in or operating agreement.
Official sources reviewed: Ghana Minerals Commission FAQs; Minerals and Mining Act, 2006, as amended by Act 900 of 2015.
Kenya and Tanzania: Local Ownership Rules Set the Boundary
Kenya does not allow a wholly foreign-owned small-scale mining permit. Under the Mining Act No. 12 of 2016, an artisanal mining permit, prospecting permit or mining permit requires a Kenyan citizen or a corporate body with at least 60% Kenyan shareholding.
That percentage is decisive. A company with 40% Kenyan ownership does not meet the statutory threshold, even if Kenyan directors or employees support the project.
Tanzania takes a different approach under the Primary Mining Licence, or PML, regime. Foreigners cannot hold or conduct mining under a PML, which is Tanzania’s small-scale licence category. Tanzania permits foreign participation in other mining categories, but investors should not assume that participation extends to PML operations.
Illustrative example: choosing between Kenya and Tanzania
Take an international mining group that wants majority control of a small gold operation. In Kenya, the group would need a corporate structure with at least 60% Kenyan shareholding for the relevant permit category.
In Tanzania, majority control does not solve the issue if the project needs a PML, because foreigners cannot hold or conduct mining under that licence. The better judgement call is to assess whether the deposit and investment scale suit another Tanzanian mining category, rather than trying to force a foreign investment model into a PML.
Official sources reviewed: Kenya Mining Act No. 12 of 2016; United Republic of Tanzania Ministry of Minerals investor guide, current 2026 guidance.
Build the Licensing Plan Before the Investment Plan
The legal answer differs sharply across the five jurisdictions:
● Botswana permits foreign participation in a Minerals Permit, subject to residence or company requirements and defined scale limits.
● Zambia permits foreign participation in a Small-Scale Mining Licence through a company with at least 5% Zambian equity.
● Ghana reserves Small-Scale Mining Licences for Ghanaian citizens.
● Kenya requires at least 60% Kenyan shareholding for the relevant artisanal, prospecting or mining permit.
● Tanzania does not permit foreigners to hold or conduct mining under a Primary Mining Licence.
These rules can change through legislation, regulations or regulator practice. We recommend a current legal and regulatory review before company registration, mineral-right due diligence or capital deployment. The ownership rule is only the first screen. Environmental approvals, tax compliance, land or surface rights and local-content commitments can decide whether a project reaches the application stage.
Frequently Asked Questions
Can a foreigner own a small-scale mining licence in Africa?
It depends on the country and licence class. As of October 2026, Botswana and Zambia provide defined foreign-participation routes under stated conditions. Ghana, Kenya and Tanzania impose restrictions that can prevent a wholly foreign-owned small-scale operation.
Can a foreign investor hold 95% of a Zambian small-scale mining company?
A company applying for a Zambian Small-Scale Mining Licence requires at least 5% Zambian equity. That can allow foreign investors to hold up to 95%, subject to the Ministry of Mines and Mineral Development requirements and other approvals.
Does Ghana allow a foreign investor to use a local nominee for small-scale mining?
No. Ghana reserves the Small-Scale Mining Licence for Ghanaian citizens aged at least 18. A nominee arrangement does not make prohibited foreign small-scale mining lawful, and the law provides significant sanctions for unlawful activity.
What approvals should investors prepare besides the mining licence?
The answer varies by jurisdiction. Botswana requires items including surface rights, environmental approval and archaeological clearance for a Minerals Permit. Zambia requires, among other documents, a tax-clearance certificate, approved Environmental Project Brief, mining plan, pegging certificate and local-employment and local-business proposals.
Foreign mining investment needs a structure that can stand up to regulator review, investor due diligence and operational reality. Visit our mining hub for licensing and setup support, or speak with our team about your proposed jurisdiction and licence route.
