Drilling and blasting company, KW Blasting, has raised concerns over losing business opportunities to the increasing dominance of Chinese miners as they prefer contractors from the Asian giant to locals, NewDay Business heard this week.
Founded in 1981, KW Blasting has been a key player in Zimbabwe’s mining and construction industries. The company specialises in drilling and blasting services for surface mining, dam construction and quarry development.
However, despite its long-standing presence in the industry, the company now struggles to compete with Chinese firms that have established a foothold in Zimbabwe’s mining sector.
“The biggest challenge is the entry of Chinese clients. Most lithium mines are now run by Chinese companies and they bring their contractors,” KW Blasting operations manager Sebastian Nyagona told NewsDay Business.
“We have lost jobs there. The same is happening in coal mining, where they [the Chinese miners] have also taken over with their service providers.”
- New labour body to champion workers’ rights in Zimbabwe
- USD pricing remains elevated
- 4 784% O’mari growth spurs Old Mutual Zim digital transformation
- Masholds bolsters investment property portfolio with US$10,9m
- NetOne launches MoGigs to bridge digital divide
Beyond losing contracts, KW Blasting is also struggling with financial constraints due to economic headwinds.
This has been worsened by the country’s perceived high-risk profile, which has led international equipment suppliers to want to be paid in cash instead of on credit terms.
“You find that we are losing a lot of our local business to Chinese contractors. On top of that, cash flows are a challenge,” Nyagona said.
“We can’t buy equipment on credit from outside the country because Zimbabwe is considered a risky market. Local banks are not supporting us either.”
In addition, the firm is battling a severe skills drain as experienced workers leave for better-paying opportunities outside Zimbabwe.
“A lot of our skilled workers are in demand overseas, especially in Australia. We are losing big time on that,” Nyagona said.
Despite these challenges, KW Blasting remains optimistic about 2025, buoyed by strong gold prices and increased mining activity.
“The general outlook is good because gold prices are high. The gold mines we work with, such as Eureka and Canterbury, are increasing their volumes,” Nyagona said.
“At the moment, we are also working with Zimplats, and our order book is strong. So, we see 2025 as a good year.”
As Zimbabwe’s mining sector continues to expand, the role of local service providers remains uncertain.
While foreign investment has brought capital and development, it has also raised concerns about fair competition and local participation, according to experts.
