Online Reporter
Nqobile Bhebhe
Zimpapers Business Hub
Zimbabwe’s mining industry is increasingly creating opportunities for local suppliers, but the manufacturing sector is failing to fully capitalise on the multi-billion-dollar procurement market.
This follows revelations that only US$410 million worth of mining inputs are being manufactured locally despite the sector spending US$3.4 billion on goods and services.
The findings emerged at the Mine Entra Suppliers Symposium in Bulawayo on Wednesday, where Government and industry leaders challenged local manufacturers to increase production capacity and deepen participation in the mining value chain to accelerate industrialisation and maximise value retention.
Speaking during the symposium, held under the theme “Enhancing Local Content in the Mining Value Chain,” Chamber of Mines of Zimbabwe chief executive officer Dr Isaac Kwesu said the mining industry has become a major driver of demand for locally sourced goods and services.
Most of the mining companies’ expenditure, however, is spent on foreign suppliers.
He said the Chamber’s 2025 State of the Mining Industry Survey showed that of the US$8.4 billion generated by the mining industry in 2025, approximately US$3.4 billion, representing 40 percent of total industry revenue, was spent on suppliers providing products and services, electric power, machinery, transport, chemicals and other critical mining inputs.
Dr Kwesu said local procurement now accounts for about 70 percent of mining companies’ procurement expenditure.
“While it is commendable that 70 percent is sourced locally, it is still worrisome that only 70 percent of this figure, US$410 million, is manufactured locally.
“In other words, of the US$3.4 billion, only US$410 million was manufactured locally, with the balance largely constituting imported products distributed through local suppliers.”
He said the figures demonstrate the urgent need to strengthen Zimbabwe’s manufacturing base so that more mining inputs are produced locally, allowing the country to retain greater value, create employment and stimulate industrial growth.
“As the Chamber of Mines, our vision is to foster a strong, broad-based and inclusive mining industry supported by a vibrant, competitive upstream sector.
“Strong backward and forward linkages between mining and local suppliers are essential for maximising the sector’s macro-effects, stimulating industrial growth, creating employment opportunities and ensuring that the benefits of mining are shared across the entire economy,” he said.
Dr Kwesu said the symposium’s theme dovetails with Zimbabwe’s industrialisation agenda and Vision 2030.
“This year’s theme, Enhancing Local Content in the Mining Value Chain, is both timely and strategic.
“As Zimbabwe continues to expand its mining industry and pursue Vision 2030, there is an increasing need to ensure that greater economic value supports empowerment and promotes the broad-based growth of our country.
“This can only be achieved if we spread meaningful participation across the entire mining value chain, from the suppliers of goods and services to manufacturing, engineering, logistics, construction, energy and infrastructure development.”
Despite the manufacturing deficit, Dr Kwesu said mining continues to maintain strong linkages with the wider economy.
“Notwithstanding, the mining sector continues to maintain strong links with other sectors of the economy, with its expenditure constituting about 12 percent on electric power, 4.5 percent from distribution, 3 percent from non-electrical machinery, 1.5 percent on plastic and rubber, 1 percent from fibres, while 17 percent came from mining itself.”
He said the industry’s contribution extends beyond direct spending.
“The mining sector currently has an estimated multiplier of three, meaning that for every dollar generated by the mining industry, an additional three dollars is created elsewhere in the economy through business ventures and business-to-business linkages.”
Industry and Commerce Minister Nqobizitha Mangaliso Ndlovu said the mining sector’s high local procurement levels present a significant opportunity to transform Zimbabwe’s industrial base by increasing domestic manufacturing capacity and reducing reliance on imported technologies.
He said Government estimates indicate that 85 percent of mining procurement is sourced locally, but much of that expenditure ultimately benefits foreign manufacturers because many products are imported and distributed through local companies.
“For me, this is a huge opportunity because 85 percent is going somewhere. It’s creating employment opportunities elsewhere,” said Minister Ndlovu.
He urged Zimbabwe to invest more aggressively in advanced manufacturing technologies to ensure more mining inputs are produced domestically.
“Some economies are investing in advanced technologies and we are importing those technologies. And I am not too sure if we are investing enough in even upgrading those technologies.”
Minister Ndlovu said the mining sector’s procurement expenditure should be leveraged to build stronger industrial capacity and sustainable value chains.
“Again, we believe that this 85 percent presents huge opportunities for us to strengthen our industrial capacity.”
He warned that local content policies would only deliver meaningful results if backed by practical implementation.
“Local content can remain as a talk show if we do not take practical steps of making sure that this is realised.”
The minister said one of the major obstacles is that many locally manufactured products are not easily identifiable by procurement officers.
“The question is: how do we make the products that are available visible for those who want to buy them?”
To bridge that gap, the Government, working with Buy Zimbabwe, has developed a digital platform that will allow procurement officers to identify locally manufactured products, suppliers and prices more efficiently.
“And I am able to say that as we proceed, as we progress, working with Buy Zimbabwe, we have developed a digital platform which has been going through tests because it involves people uploading their computational information.
“This platform will be available to those who want to procure to know what products are available where, who is selling what and at what price.”
Minister Ndlovu said increasing the use of locally manufactured inputs across industrial value chains would naturally raise companies’ local content levels while stimulating domestic production.
“If you are buying higher local content thresholds into your production processes, it also automatically upgrades your local content as a company.”
He added that sustainable local content policies depend on developing capable domestic suppliers and making them easily identifiable by industry.
“Local Content works when capability is visible, qualified and integrated into demand.”
The symposium brought together Government officials, mining companies, manufacturers and suppliers to explore practical strategies for strengthening local content, deepening industrial linkages and ensuring Zimbabwe captures greater value from its mineral resources through increased domestic production and industrialisation.
