Political Risk Outlook
Resource nationalism consists in actions of host governments, short of outright expropriation, to take control of economic activities and revenue generated by private enterprises in the extractives sector.
General Concern
Analysts are predicting the advent of a new commodity super-cycle, powered by the economic recovery and the energy transition narrative. The mining and metals industry may be facing a renewed period of intense resource nationalism.
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The most common issues driving a country’s risk environment include increasing tax pressures, changing contractual terms, and stronger indigenisation requirements, alongside a worsening of the regulatory climate.
Country Highlights
‘Extreme risk’ represents the countries where the risks to business from governments taking greater control of natural resources is highest. Africa is home to an increasing number of countries experiencing a rise in these risks.