Investor interest in mining increases, US$400million projects approved

Tapiwanashe Mangwiro, [email protected]

Zimbabwe is witnessing growing investor interest in the mining sector after approving US$400 million in investment proposals in the last quarter of last year, which authorities say is a vote of confidence in the country’s attractiveness as an investment destination.

The Zimbabwe Investment and Development Agency (Zida), however, says the real dividend for the country can only be realised if the proposed investments transition from paper to production.

This emerged last week, when officials from Zida and the Ministry of Mines and Mining Development met to exchange notes on how best to promote mining investments in Zimbabwe.

Mining is the backbone of Zimbabwe’s economy, contributing 60-80 percent of total export earnings, roughly 12-14 percent of gross domestic product and nearly 70 percent of foreign direct investment (FDI).

It is the primary source of foreign currency, supporting Government revenue and livelihoods through vast deposits of platinum, gold, lithium and diamonds.

Zida chief executive officer, Mr Tafadzwa Chinamo, said sustained dialogue between the public and private sectors was key to unlocking the full potential of Zimbabwe’s mining industry.

“Today’s dialogue is a critical step forward; it provides the platform we need to, candidly, interrogate our challenges, align on practical solutions and explore bankable, transparent pathways for private sector participation,” Mr Chinamo said.

He emphasised that while the trend on project approvals was encouraging, co-ordinated execution across Government institutions remained essential.

“Unlocking Zimbabwe’s mining potential is a shared responsibility that requires trust, alignment and co-ordinated execution. Stronger inter-agency collaboration across ministries and departments is key to reducing bottlenecks and facilitating increased investment,” he said.

The Ministry of Mines and Mining Development also stressed the need to ensure that approved projects translate into tangible economic outcomes.

Permanent secretary in the ministry, Mr Pfungwa Kunaka, said that beneficiation and value addition remained central pillars of Government policy under the five-year economic plan, the National Development Strategy 2.

“Under NDS2, value addition and beneficiation are key priorities as the country works to put in place workable policies that attract investors,” Mr Kunaka said.

“The meeting reflects continued engagement between Zida and the Government in sustaining the nation’s investment needs.”

Zida and the ministry underscored a key resolution from the meeting: the need for closer follow-up on approved mining projects to ensure timely implementation.

This, they said, would enable the economy to realise full value from its mineral wealth.
Mining engineer and industry analyst, Chido Mavhunga, said this alignment between policymakers and investment authorities was critical.

“If follow-up becomes as rigorous as licensing, Zimbabwe’s mining sector can move from promise to performance,” she said. “That is when these figures will start showing up meaningfully in growth, exports and employment.”

She noted that the scale of approvals of over 100 mining licences in just three months reflected the growing impact of macroeconomic and sector-specific reforms aimed at restoring investor confidence.

According to Eng Mavhunga, the strong investor appetite in Zimbabwe’s mining sector creates an opportunity to correct those weaknesses through tighter follow-up and clearer accountability.

“Zimbabwe has some of the world’s most diverse mineral resources, but value is often lost between licensing and actual mining activity,” she said.

“A more hands-on approach after approval, tracking milestones, resolving bottlenecks and supporting investors through implementation, is what will convert confidence into measurable economic growth.”

She highlighted the importance of aligning new mining projects with beneficiation and industrialisation goals under NDS2. Eng Mavhunga said raw mineral exports alone would limit the country’s ability to maximise returns from the current investment wave.

“Global investors are increasingly looking for jurisdictions that support downstream processing,” she said. “If Zimbabwe can combine its resource endowment with policy certainty around beneficiation, it strengthens both revenue generation and long-term industrial development.”