Resource nationalism in Africa More for my people

The Economist Report.
ZAMBIA’S copper belt is in a jubilant mood. Mining output and prices reached an all-time high last year, as did local sales of bar drinks and luxury cars. Foreign companies—the only ones with enough capital and expertise to do the digging—are ramping up production. Meanwhile the government has increased mining levies. The extra money will be used to build much-needed roads, hospitals and power stations.
Zambia is one of many places where an African government has decided to take a bigger share of the profits from foreign-operated mines. In countries as distant as Ghana and South Africa populist politicians have declared open season on foreign miners’ profits. In some cases the companies have more or less graciously accepted higher taxes. Elsewhere they are infuriated by the threat of expropriation.
There is nothing new about resource nationalism, often accompanied by allegations of colonial exploitation by the multinationals. In the past it was mostly focused on oil companies and driven by anti-market ideologies. The new resource nationalists, however, have embraced capitalism and shifted industry. Few governments think they can do a better job of extracting the minerals themselves; they just want a bigger pay-off from those whom they allow to do the mining.
And rightly so. Mineral wealth belongs to local people and their leaders are only doing their job when they extract the maximum rent over the long term. But they must do so sensibly. Zambia’s government notified companies in advance of levy increases, consulted them on the details and did not go beyond what is sustainable.