PRESIDENT Emmerson Mnangagwa’s recent address at the Mine Entra exhibition in Bulawayo should be a potential paradigm shift in the country’s approach to its mineral wealth.
The President’s commitment to incentivise local beneficiation and value-addition in the mining sector marks a departure from decades of raw mineral exports, a practice that has long been criticised for stunting economic growth and perpetuating a cycle of resource dependence.
For years, Zimbabwe, like many of her African counterparts, has been trapped in the role of a primary commodity exporter, shipping out unprocessed minerals and effectively exporting jobs and economic opportunities along with her natural resources.
This approach has left the country vulnerable to the whims of global commodity markets and prevented the development of a robust and diversified economy.
Mnangagwa’s declaration that “additional incentives and support will also be provided to companies that invest in local beneficiation and value-addition” represents a pivotal moment in breaking this cycle.
The potential benefits of this new direction are key.
In processing minerals domestically, Zimbabwe could dramatically alter her import-export matrix, moving up the value chain to produce and export finished or semi-finished products rather than raw materials.
This shift would not only increase the value of exports, but also create a multiplier effect throughout the economy.
As the President aptly noted, “We expect spinoffs from mining into other sectors, which will, in turn, promote rapid industrialisation of our country.”
Such industrialisation could be transformative for Zimbabwe’s economy and society.
The development of mineral processing industries would create a demand for skilled labour, fostering job creation and skills development across various sectors.
It would stimulate technological advancement and innovation, positioning Zimbabwe as a potential leader in mining technology on the African continent.
Moreover, the growth of ancillary industries to support these new processing capabilities could lead to a more diverse and resilient economic base.
However, the path from vision to reality is fraught with challenges that must be addressed head-on.
Zimbabwe faces significant gaps in infrastructure, technology and human capital that have historically hindered its ability to add value to its mineral resources.
Overcoming these obstacles will require a comprehensive and sustained effort from both the public and private sectors.
Substantial investment in infrastructure is crucial.
This includes ensuring a reliable and affordable power supply, a perennial challenge in Zimbabwe, as well as developing efficient transportation networks to move both raw materials and finished products.
Modern processing facilities equipped with state-of-the-art technology are also essential to compete in global markets.
Equally important is the development of human capital.
Zimbabwe must invest heavily in education and skills training to create a workforce capable of operating and managing advanced processing industries.
This includes not only technical skills, but also managerial and entrepreneurial capabilities to drive innovation and business growth in the sector.
A stable, transparent and predictable regulatory framework is essential to attract both domestic and foreign investment.
As Mines and Mining Development minister Winston Chitando emphasised, compliance with regulations is crucial for sustainable growth.
However, this must be balanced with incentives that make local processing economically viable for mining companies, especially in the early stages when costs may be higher than traditional export models.
Furthermore, Zimbabwe must work to develop local and regional markets for processed minerals while simultaneously establishing herself as a competitive player in global value chains.
This requires strategic market research, the cultivation of international partnerships and potentially government support in areas such as trade negotiation and export promotion.
The focus on technology and innovation, as highlighted by the Mine Entra theme Unearthing Success: The Mining Value Chains, Innovation and Industrialisation Nexus, is particularly critical.
In today’s rapidly evolving global economy, Zimbabwe cannot afford to lag behind in technological adoption.
Embracing cutting-edge technologies in mineral processing could not only increase efficiency and competitiveness, but also position the country as a leader in sustainable mining practices.
The alignment of this new mining strategy with broader national goals of economic development and inclusive growth is clear.
In processing minerals domestically and creating value chains within Zimbabwe, the country can create a more inclusive economy that provides opportunities for local businesses and workers at all levels.
This approach resonates strongly with Mnangagwa’s mantra of Nyika inovakwa nevene vayo (a nation is built by its own people), encouraging Zimbabweans to take an active role in building their economy.
However, it is important to recognise that this transformation will not happen overnight.
It requires a long-term commitment from all stakeholders government, private sector, civil society, and international partners.
The government must maintain policy consistency even in the face of short-term challenges, while businesses must be willing to invest in new capabilities and take calculated risks.
The international community also has a role to play.
Zimbabwe could benefit greatly from technology transfer, capacity building assistance and investment from countries with established mineral processing industries.
Multilateral institutions could provide technical expertise and financing to support the development of key infrastructure and human capital.
As Zimbabwe embarks on this ambitious journey to transform its mining sector, it’s worth reflecting on the words of ZITF Company board chairperson Busisa Moyo, who said: “The emphasis on beneficiation and technological advancement will not only attract investment but also create more employment opportunities in the region.”
This encapsulates the promise of this new approach, a mining sector that not only extracts wealth from the ground but also creates prosperity for the nation.
- Lawrence Makamanzi is a researcher and he writes here in his personal capacity. He is reachable at his email address blmakamanzi@gmail.com or 0784318605.