By Farai Muroiwa Marapira
Investments in the mining sector are seen as a crucial component in achieving Zimbabwe's Vision 2030. The government has recognized the potential of the mining sector to transform the economy and has unveiled a blueprint to revitalize the sector and create a $12 billion economy. The plan includes investments in exploration, opening of new mines, reopening of existing ones, and value addition of minerals.
The projected multi-billion dollar industry will be driven by various minerals such as diamond, gold, lithium, chrome, iron ore, and coal. The government expects these investments to lead to greater value addition, employment creation, increased exports and foreign currency generation, enhanced productivity, and capacity building.
Since the announcement of the blueprint in 2019, the mining sector has shown significant growth. In 2021, the country generated $5.2 billion in revenue from minerals, compared to $3.5 billion in 2020. The revenue continued to rise in 2022, reaching $5.62 billion, and soared to $9.77 billion in 2023, marking a 261 percent growth since 2017.
His Excellency, President Emmerson Dambudzo Mnangagwa has emphasized the government's commitment to creating a favorable environment for investors in the mining sector. As a result, the sector has attracted substantial investments, with a combined new mining investment value exceeding $6 billion by 2022. These investments have created thousands of job opportunities for locals.
In 2023, 76 percent of the projected investment value for all licenses issued by the Zimbabwe Investment and Development Agency (ZIDA) were in the mining sector. Notable investments include Ajako United Ltd with a project value of $6.94 billion for gold, lithium, manganese, and copper mining, and Innermost Resources Zimbabwe Ltd with $1.4 billion for gold mining.
Prominent exploration projects include Australia-listed company Invictus Energy, which has commenced drilling oil and gas wells in Zimbabwe. If successful, this project could potentially make Zimbabwe one of the world's largest gas producers.
Another significant investment is the Dinson Iron and Steel Company's multi-billion-dollar steel plant, which is expected to create around 15,000 jobs and become Africa's largest integrated steel manufacturing plant.
To enhance transparency and efficiency, the government has introduced the Automated Cadastre Information System to expedite mining title registration and management. The system also helps prevent leakages in the sector. Additionally, Zimbabwe, with its abundant lithium deposits, has banned the export of raw lithium to promote value addition and beneficiation. The government plans to meet 20 percent of global lithium demand as the world shifts to clean energy and electric mobility.
Many of these projects have been granted "National Status" under the Rapid Results Initiative, which aims to simplify administrative procedures and improve the ease of doing business in the country. Currently, the mining sector accounts for approximately 80 percent of national exports and 13% of GDP.