Sharing of Mining Rents Between Investors and States

Since 2014, FERDI, in partnership with CERDI and the Ministry of Europe and Foreign Affairs (MEAE), has been actively engaged in studying the distribution of mineral resource rents in sub-Saharan Africa. This research addresses a critical issue for resource-rich African countries, aiming to balance the need to attract investors with the necessity of generating sufficient revenue for governments.

Our comprehensive database, developed after an extensive review of existing studies, catalogs key legal and fiscal texts over an extended period and details the main taxes imposed on mining companies. Publicly accessible since September 2016 and available on its dedicated website since October 2018, the database is updated annually and currently covers 22 French-, English-, and Portuguese-speaking countries, enhancing fiscal transparency in the extractive sector.

In addition, FERDI, through the IHEDD, has been offering online training courses on mining sector taxation since 2020. These courses aim to enhance the capacities of public and private sector stakeholders, promoting fair and effective management of mineral resources.

↪ Diagnostic Studies in Congo and Senegal: In 2023, Yannick Bouterige and Bertrand Laporte delivered their findings on mining and petroleum taxation in Congo and Senegal. Conducted under the "Value Chains and Taxation Challenges in the Extractive Sector" project, this study, led by Expertise France and the Extractive Industries Transparency Initiative (EITI), was presented and discussed at workshops in Brazzaville (May 21-23, 2024) and Dakar (June 24-26, 2024).

↪ Training Programs by IHEDD-FERDI: In 2023-2024, IHEDD-FERDI offered five training programs on mining taxation.  Assessing rent-sharing is crucial for States to implement fiscal reforms, negotiate contracts, avoid renegotiations, and better forecast revenues.