Chronicle Editor
Oliver Kazunga, Senior Business Reporter
CABINET has approved four proposed investment projects that are set to create over 4 000 direct jobs and thousands of others across the value chains in different economic sectors.
The projects are a joint venture between TelOne, Flashcord and the National Venture Capital Company of Zimbabwe to form the Zimbabwe Innovation and Technology Company (Pvt) Limited (ZITCO), which manufactures Information Communication Technology gadgets.
Another joint venture partnership initiative involves the Zimbabwe Mining Development Corporation (ZMDC) and Chandiwana Mines (Pvt) Ltd for the resuscitation of Sabi Gold Mine in Zvishavane, as well as a joint venture between ZMDC and Govine Enterprises for the resuscitation of Shamrock Copper Mine in Hurungwe, Mashonaland West province.
Also approved is the proposed engagement of Samano Holdings (Pvt) Ltd by Mazowe Rural District Council for the exploration and mining of limestone at Dandamera Farm in Mazoe, Mashonaland Central province.
In a post-Cabinet media briefing on Tuesday, Acting Information, Publicity and Broadcasting Services Minister, Dr Joram Gumbo said the four investment projects were presented by the Minister of Finance and Economic Development, Professor Mthuli Ncube, as chairman of the Public Private Partnerships (PPP) Committee.
“Under the ZITCO project, to date, a total of 3 500 ICT gadgets have been manufactured with production expected to reach 5 000 at the end of the year,” said Dr Gumbo.
“The economic benefits of the joint venture are employment creation, over 2 000 jobs will be created at the plant.
“Local production of the devices will result in import substitution, thereby saving foreign currency.”
The targeted export market for the ICT devices includes Zambia, Malawi, Namibia, Botswana and Mozambique with exports estimated to generate US$25 million in the first three years (2022-24).
It is hoped that the project would also go a long way in consolidating local industries through engagement of local skilled personnel use of domestic materials with a knock-on effect in promoting upstream and downstream industries.
On the partnership between ZMDC and Chandiwana Mines, Minister Mutsvangwa said the latter would inject the necessary working capital for the resuscitation of Sabi Gold Mine. Under the initiative, ZMDC is expected to contribute mineral and material resources.
“The joint venture will be for a five-year period and will contribute 1 428 kilogrammes of gold to overall national production,” said Dr Gumbo.
“The project will initially create 650 jobs for locals, and this number will subsequently benefit 800 employees at full production.”
Other benefits of the project will include sustained production at Sabi Gold Mine, enhancement of the socio-economic environment in Zvishavane, and the clearance of the debts as well as generating goodwill for Government as a shareholder.
The project will also contribute to the US$12 billion mining industry roadmap by 2023, a milestone the Second Republic has set.
On the ZMDC and Govine Enterprises, Minister Gumbo said Shamrock Copper Mine was expected to produce 34 200 tonnes annually while generating US$45 million per annum when fully operational.
Govine Enterprises would inject the required while ZMDC will contribute mineral resources, mining title and infrastructure at the mine.
“ZMDC and Govine Enterprises will share revenue from gross sales in the ratio 20:80 in the first six years and 33:67 in the subsequent four years,” he said.
“The project will create 400 jobs for locals, and Zimbabwe will benefit from technology transfer as well as US$295 million in foreign currency generation over 10 years.
“The investor, as part of corporate social responsibility, will construct amenities and facilities such as schools and clinics for the benefit of the local community.”
Minister Gumbo said the engagement of Samano Holdings (Pvt) Ltd by Mazowe Rural District Council would contribute to improved revenue inflows for the local authority.
It is hoped that Samano Holdings will invest US$10,6 million including US$4,5 million required for the 5MW solar plant to supply power to the mining operations.
Mazowe Rural District Council will contribute mineral resources and the mining title while the two parties would the project on a shareholding ratio of 30:70 in the first five years and 40:60 subsequently.
“The project will create at least 1 000 jobs for locals, generate US$170 million over ten years and plough back to the community through corporate social responsibility programmes.
“The mining venture will also provide a wide range of products for use by agricultural and construction industries, thereby contributing to economic growth for the surrounding areas,” she said. — @KazungaOliver
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