MINES and Mining Development deputy minister Polite Kambamura has called for increased funding in the upcoming 2025 National Budget to sustain the mining sector’s momentum.
During pre-budget consultations for the upcoming 2025 National Budget, the Mines and Mining Development ministry made a budgetary bid of ZiG2,09 billion for next year.
However, the Finance, Economic Development and Investment Promotion ministry dismissed that request and capped the Mines ministry’s budget allocation at ZiG227,8 million.
This has left the ministry with a budget deficit of ZiG1,86 billion for next year.
Treasury’s refusal to adequately support the mines portfolio comes at a time when the mining sector accounts for 70% of the total exports, making it the nation’s top forex earner. Owing to global commodity price volatility, however, the mining sector’s growth was revised downwards by 2,4 percentage points to 5,2% for the year.
“We are looking forward to growing the sector. We need more funding for exploration and to sustain the sector where it is,” Kambamura told NewsDay Business in an interview.
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The deputy minister emphasised the importance of maintaining the standards achieved under the government’s US$12 billion mining industry initiative.
“We have reached the US$12 billion milestone in the mining sector. Now, we need to sustain it. This includes ensuring that standard mining practices, environmental sustainability and green ethics are upheld,” Kambamura said.
“Often, during a sector boom, environmental issues are neglected, so we need funding to focus on inspectorate functions and monitoring.”
In 2019, the Mines and Mining Development ministry set a target of getting the sector to reach annual revenue of US$12 billion by 2023.
This target was not met as confirmed by the Chamber of Mines of Zimbabwe, as 2023 saw the industry reach revenue of US$5,4 billion.
Revenue projections for this year and 2025 are US$5,5 billion and US$6 billion, respectively.
The US$12 billion was not achieved due to foreign currency shortages, power cuts and excessive rains.
Since missing this target, the Mines and Mining Development ministry has tried to redefine its original US$12 billion revenue goal.
Kambamura underscored the need to capacitate provincial offices and develop skills among ministry technocrats to support the sector’s ongoing expansion.
“We are also looking forward to ministerial capacitation, including skills development for our technocrats. These are key areas where more funding is required,” he said.
Kambamura revealed that the government is finalising the long-awaited Mines and Minerals Act, a critical piece of legislation aimed at addressing regulatory challenges, improving efficiency, and creating an investor-friendly mining environment.
“Significant improvements have already been made in how investors are received, the time taken to apply for a mining title, and the overall engagement process. The new bill will address these areas comprehensively,” he said.