Resource nationalism reshapes how governments manage their natural assets.
While it can be a positive step for individual countries, it can create challenges for global businesses. CEOs face rising risks—from shifting policies to supply chain disruptions—that demand proactive strategies.
Understanding this trend is crucial to navigating its impact and protecting profitability.
What Is Resource Nationalism?
So, exactly what is resource nationalism? It happens when a government asserts control over its natural resources for economic or strategic reasons.
This often involves imposing new taxes, renegotiating contracts, increasing royalties, or even nationalizing industries tied to resource extraction.
It’s not always about taking outright ownership. Sometimes it means implementing policies that give the state a bigger share of profits or more say in how resources are managed.
Some countries have strong leverage due to the value of their natural assets. But others struggle to exert full control over foreign investors managing those resources.
Take Botswana as an example: home to some of the world’s most valuable diamond reserves, yet facing challenges in capitalizing on them fully.
In July 2025, the Botswana President Duma Boko addressed frustrations with De Beers’ (the South African–British corporation) handling of diamond sales.
He said: “De Beers is not doing its job. Maybe we should take over and sell them ourselves (...) We will take the diamonds and see what we can do with them (...) These diamonds are ours. And so before the end of this year, something very drastic in that space will happen. If it doesn’t happen, we will die trying.”
His words highlight a key tension: countries may hold valuable resources but feel constrained by external players controlling their market access.
Now you understand what resource nationalism is all about, let’s explore some key reasons why CEOs should care about it…
Changing Policies Directly Impact Profit Margins
Resource nationalism often leads to abrupt policy changes, such as increased taxes, royalties, or restrictions on foreign investments.
These adjustments directly affect a company's bottom line by reducing profits or increasing operational costs.
For example, governments may renegotiate contracts mid-term to secure larger revenue shares from resource extraction projects.
When this happens, businesses must re-evaluate their financial models and strategies.
CEOs cannot afford to overlook these shifts because they influence investor confidence and overall market stability.
Understanding local political landscapes helps mitigate risks early. Monitoring proposed regulations and engaging in transparent negotiations can safeguard profit margins against unexpected policy changes.
Resource Nationalism Threatens Operational Stability
Unpredictable regulations or government interventions can disrupt ongoing operations.
Resource nationalism often involves renegotiating contracts, nationalizing industries, or imposing export bans. These measures create uncertainty for businesses reliant on consistent access to resources.
For instance, sudden tax hikes or restrictions may halt production schedules and lead to supply shortages.
Political unrest tied to these policies can also impact safety and infrastructure reliability in resource-rich regions.
CEOs must account for this instability when planning long-term projects.
Establishing contingency plans, diversifying operational locations, and fostering relationships with local governments are essential steps to navigate the uncertainties tied to resource nationalism effectively.
Supply Chain Vulnerabilities Put Business Continuity at Risk
Lastly, resource nationalism can create bottlenecks in global supply chains, especially for critical materials like rare earth minerals or energy resources.
When governments prioritize domestic use or restrict exports, international businesses face disruptions that ripple through production and distribution networks.
These vulnerabilities are particularly concerning for industries relying on just-in-time manufacturing.
A sudden export ban on vital raw materials can halt operations entirely, delaying product deliveries and impacting revenue.
CEOs must address this risk by diversifying suppliers and sourcing strategies. Building resilient supply chains with alternative resource streams ensures continuity, even when geopolitical shifts or nationalist policies threaten the flow of materials.
