Zimbabwe’s Mining Sector Poised for Growth After Stable Elections

• Zimbabwe recently held elections, and President Emmerson Mnangagwa has been re-elected and inaugurated, providing stability for decision-making.
• Zimbabwe's mining sector contributes 60% of exports and 13% of the country's GDP, with over $5 billion realized in 2022, a 100% increase from 2017.
• Zimbabwe boasts rich geological resources, including Precious Metals, Platinum Group Metals, gold deposits, Kimberlite, core results, and high-grade metallurgical quality chromite.
• The country offers investment opportunities in diamonds, lithium, steel manufacturing, phosphates, high hydrocarbons, mineral exploration, and cross linkages with other sectors, along with competitive tax rates and incentives for investors.

Zimbabwe recently held elections, leading to the re-election and inauguration of President Emmerson Mnangagwa. The stable political climate puts Zimbabwe in a strong position for investment and growth in its mining sector, which is a major contributor to exports and GDP. Zimbabwe offers opportunities across over 60 minerals and has made several promising new mineral discoveries in recent years.

Vast Geological Resources

Zimbabwe has widespread greenstone belts rich in precious metals like gold and platinum group metals. The country hosts over 4,000 recorded gold deposits and is the world’s second-largest source of platinum group metals. Additionally, Zimbabwe has around 160 kimberlite deposits, which often contain diamonds.

The country has over 26 billion tons of coal resources and around 100 million cubic meters of coal bed methane. Zimbabwe is home to one of the world’s largest resources of high-grade metallurgical quality chromite. Recent exploration has also unveiled lithium, nickel and other mineral deposits.

New Projects Launching

In 2022, Zimbabwe launched five new lithium projects to tap into the growing global demand for this battery metal. The country has identified 30 nickel deposits suitable for mining. Zimbabwe offers opportunities for investors in mineral value addition and beneficiation in areas like steel manufacturing.

Mineral exploration is accelerating in Zimbabwe. As of 2022, 40 exclusive prospecting orders are active. Nearly 1 million hectares have recently been opened up for mineral exploration. The government is welcoming investment into new geological surveys and exploration activities.

Partnerships Available

The government’s mining promotion corporation holds mining assets open for joint ventures. Investors can partner on extraction projects or acquire mining titles and licenses. Tributary agreements are another option for partnering with Zimbabwean entities on mining projects.

Zimbabwe also offers competitive tax rates to miners, including a 15% tax on special mining projects and 24% income tax. The country does not restrict the repatriation of mining revenues. Mining firms enjoy deductible capital expenditure and indefinite loss carryovers to offset taxes when profitable.

Political Changes Set Stage for Growth

With Zimbabwe’s recent elections resolved, the country is ready to advance mining sector development. Zimbabwe’s significant geological resources, active exploration, investment incentives and stability make it poised for mining investment and development.