Published: 26 September 2013

Zimbabwe's mining sector has a the potential to boost national economic activity given that it has grown by 35 percent in the period 2009 to 2011 with its contribution to Gross Domestic Product rising from 4 percent to 16 percent.

A World Bank study base-case (current infrastructure and policies) predicts that by 2018 mineral revenues in Zimbabwe could be nearly $5 billion and it could contribute fiscal revenues of over $700 million and create 33 000 jobs.

A survey carried out by the Chamber of mines estimates that the mining sector requires between $3 billion to $5 billion investment to increase capacity to an average of over 80 percent within the next three to five years.

The table 1 above shows funding requirements by mineral:

The above requirements underscore the need to promote investment in the country and to urgently address the barriers and constrains to the development of the mining sector.

The World Bank study showed that there are three main factors that can enhance or constrain the development of a mine: availability of transport infrastructure, access to power, and the policy and fiscal regime impacting the mining sector.

Infrastructure (power, transport, water) is probably the bigger constraint for Zimbabwe, especially for bulk minerals such as iron ore and coal. The report then further explains that if these current constraints are addressed to facilitate investment, 2018 mineral revenues could be over $11 billion, fiscal revenues over $1,5 billion and employment above 56 000, with investments of $11,7 billion.

These projections show the value that the country has in the form of its natural resources but for this value to be realised there is need for strategic policies that address mining development constraints.
- herald