Govt broadens participation of communities in mining sector

Cabinet considered the update on Sundry Initiatives towards a US$12 billion Mining Industry by 2023 as presented by the Minister of Mines and Mining Development, Honourable Wiston Chitando. 

The nation is reminded that Cabinet in April 2021 banned the export of lumpy chrome ores with immediate effect and export of chrome concentrates effective from July 2022. Chrome mineralization occurs mainly in two forms namely: lumpy ores which are fed straight into furnaces; and alluvial ores, like sands, which are upgraded into higher value sands for feeding into furnaces, commonly referred to as chrome concentrates.

With the technology currently in use on most of the furnaces in the country, unless the concentrates undergo an agglomeration process, there is a limit to the extent to which they can be utilised in the furnaces. The rationale for banning the export of ores and concentrates was for companies to invest in the requisite facilities to value-add to  ferrochrome.  This policy still stands, and companies have started the process of constructing smelting furnaces.  To enable these companies to raise the necessary capital, Cabinet has approved recommendations by the Ministry of Mines and Mining Development for the exemption on the ban of export of chrome ores by the concerned companies, in order to complete the construction and expansion of furnace and processing facilities.

Following the boom in the mining sector, Government has seen it fit to broaden participation of communities in the sector.  To that end, Cabinet wishes to advise the nation that it granted the request by the following traditional leaders to acquire mining titles in reserved areas for the benefit of their communities: Tefra Mining Syndicate (Chief Marange); Goromonzi Mining Trust (Three Chiefs Rusike, Chinamora, Chikwaka); Chinamhora Mining Syndicate (Chief Chinamhora); Chiwara Mining Syndicate (Chief Chiwara); Bere SP Mining Syndicate (Chief Bere); and Budiriro Mining Syndicate (Chief Chiweshe). Cabinet further granted the request by War Veterans for  mining titles.

Cabinet also approved the applications to correct technical anomalies in some mining syndicates. The following applications to optimize current operations were also approved: Inglehart Enterprises (Pvt) Ltd Jubilee Mine); Scarfbrook Services (Pvt Ltd); Dorcas Mining Syndicate; Moral Capital Zimbabwe (Pvt Ltd); Exodus and Company; and Premier Portland Cement, Zimbabwe.

Cabinet approved a proposal through which part of the Mashava Reservations held by the Ministry of Mines and Mining Development will be allocated to eleven syndicates. These syndicates will be from each of the eight administrative districts of Masvingo Province with three other syndicates being solely for youth, war veterans and women to supply chrome ores to Zimbabwe Zhongxin Smelting Company (ZZSC). The company is a new ferrochrome smelting project based in Mashava, Masvingo Province with capacity to generate about US$88 million and create 200 jobs locally. 

STATE OF INDUSTRY BOOKLET

Zimbabwe has achieved remarkable modernisation and industrialisation milestones under the “Moving the Economy up the Value Chain and Structural Transformation” pillar of the National Development Strategy 1: 2021-2025, as presented by the Minister of Industry and Commerce, Honourable Dr Sekai Nzenza, in her State of Industry Report to Cabinet. 

Strategies which Government is pursuing to spur industry and commerce growth include the following: improved access to funding by industry; implementation of the Local Content Strategy; promoting ease of doing business; economic empowerment; consumer protection; and the quality assurance programme.

Furthermore, the following strategies have benefited industry: 

Tax rebates;

Granting of Special Economic Zones status;

Introducing the domestic currency;

Support to the plastic industry; and

Provision of land with title deeds to businesses domiciled in rural areas; and

Going forward, the Industrial Development Corporation of Zimbabwe (IDCZ) will work closely with innovation hubs and industrial parks to commercialise value chains in the national interest.

Cabinet is pleased to advise that Zimbabwe’s industrial sector remains highly diversified comprising 94 sub-sectors, producing about 6 000 products. The sector is also highly integrated with the rest of the economy, and Government’s concerted measures to support industry, including macro-economic stability, have resulted in positive performance being recorded in manufacturing, as follows:

• The contribution of the value of the manufacturing sector to the country’s total value-added products increased from 15,7 percent in 2019 to 18,4 percent in 2021, and is ranked third after agriculture and mining.

• Manufactured exports have increased in value from US$324 million in 2021 to US$366 million in 2022, with most exported products being food, manufactured tobacco, textiles and packaging.

• Capacity utilisation increased from 47 percent in 2020 to 66 percent in 2022.

• The volumes of locally produced goods in retail shops increased from 40 percent in 2017 to 85 percent in 2022.

• In terms of product research, innovation, development and commercialisation, new commodities are now being locally produced on a commercial basis, such as tick grease for cattle (Contratik); grain protectants (Chamboko and Chikwapuro); cough syrup; water treatment chemicals; Covid-19 personal protective equipment (sanitisers, surgical masks, swabs, aprons, and tyvek suits); oxygen; and agricultural lime. 

The manufacturing sector’s strong performance has also been buoyed by significant investments due to the conducive environment for sustainable private-sector operations created by the Second Republic, which it continues to enhance under the “Zimbabwe is Open for Business” mantra. Some significant investments are as follows:

• Varun Beverages plant and equipment expansion in Harare;

• Delta Corporation has invested about US$600 million in new manufacturing plant and equipment;

• Bakers Inn equipment expansion in Bulawayo;

• Kefalos dairy processing plant commissioned in Mhondoro; 

• The Mega Market milling plant commissioned in Mutare;

• US$5,9 million investment in plant and machinery by Bata Shoe Company in the Midlands Province;

• US$11 million investment in plant upgrade by Sable Chemicals in Kwekwe; and 

• Pretoria Portland Cement’s Colleen Bawn plant in Matabeleland South Province has a clinker production capacity of 650 metric tonnes per annum, which translates to one million tonnes of cement per annum.  

 Meanwhile, the commerce sector currently accounts for 60 percent of the industry contribution to Gross Domestic Product, with e-commerce taking precedence in the retailing industry. The wholesale and retail sectors have witnessed massive expansion, notable among which is the establishment of the US$20 million state-of-the-art Highland Park Shopping Mall in Harare. 

The strong performance in the industry and commerce sector demonstrates that the Second Republic led by His Excellency the President, Cde ED Mnangagwa, is walking its talk in industrializing and modernizing the economy as well as economic growth. Cabinet would like to advise that the State of Industry Booklet detailing performance in the industry and commerce sector is available for public reference. 

CURRENT STATUS OF YOUTH FOCAL DESKS IN  GOVERNMENT LINE MINISTRIES 

Cabinet received and adopted the Report on the Status of Youth Focal Desks in Government Line Ministries, as presented by the Minister of Public Service, Labour and Social Welfare, as Chairman of the Cabinet Committee on Social Services and Poverty Eradication, Honourable Professor Paul Mavima.  

 To date, all line Ministries have appointed Youth Focal Persons and established Focal Desks at national and provincial level, as required by section 20 paragraph 1 of the Constitution. The public is invited to note and exploit the following services offered by the Desks:

1. Identifying and advertising youth development and empowerment programmes and opportunities in their respective Ministries;

2. Facilitating youth participation in the planning, implementation and monitoring of policies, programmes and projects;

3. Preparing sectoral reports and policy briefs;

4. Information and coordination of Ministry staff and youth desks in other Ministries; and

5. Researching and advising on the relevance and effectiveness of youth-related Ministry activities. 

Cabinet wishes to highlight that the positive results recorded by the establishment of Youth Focal Desks include the following:

• Youth empowerment opportunities have been availed in the agriculture, tourism, mining, manufacturing and social services sectors;

• Youths have been involved in and befitted from national projects spearheaded by Government such as national housing, road rehabilitation, public works, and land and livestock reform;

• Youths have benefited from Government scholarships, education, vocational and life skills training;

• A total of 1 186 241 youths have accessed opportunities and services in Government line ministries as at 14 June 2023;

• The proportion of youths involved in decision-making increased from 3,3 percent in 2020 to 5,2 percent in 2022; and 

• Youths now constitute 34,8 percent of public and private sector employees and 42 percent of those in development processes. 

Going forward, the desks and focal persons will also be further strengthened to ensure that they effectively address the national strategic intent through their activities. This will include concerted efforts to continuously build the capacity of youth focal persons and youths in general to improve their communication skills, patriotism, national strategic thinking, advocacy and counselling. Ministries, departments and agencies will continue to produce and publish comprehensive impact-based reports on implemented projects and other youth-related initiatives which are supported by evidence and statistics for the benefit of the public.

REPORT ON THE 1159TH MINISTERIAL LEVEL VIRTUAL MEETING ON THE STATUS OF IMPLEMENTATION OF THE COMMON AFRICAN DEFENCE AND SECURITY POLICY WITH SPECIAL FOCUS ON THE OPERATIONALISATION OF THE AFRICAN STAND-BY FORCE

Cabinet received and considered the report on the 1159th ministerial level virtual meeting on the status of implementation of the Common African Defence and Security Policy with Special Focus on the Operationalisation of the African Stand-By Force held on 22 June 2023 as presented by the Minister of Foreign Affairs and International Trade, Honourable Dr FM Shava.

The session was attended by colleague Ministers and Deputy Ministers of Foreign Affairs and Defence from across the continent; the African Union (AUC) Commissioner for Political Affairs, Peace and Security; Ambassador Bankole Adeoye; Ambassadors and Permanent Representatives based in Addis Ababa, Ethiopia; and Representatives of the Regional Economic Communities.

As Chair of the Session, the Minister of Foreign Affairs and International Trade highlighted the importance of the Africa Standby Force as outlined in the Solemn Declaration on the Common African Defence and Security Policy in preventive deployment, peace-building, post conflict disarmament, demobilization and humanitarian assistance. He also noted the significant progress in the operationalisation of the African Standby Force through political will and interest by the African Union, its Regional Economic Communities (RECs), and Regional Mechanisms to deploy forces within the African Standby Force framework to address the rise in security threats emerging on the continent.

The changing nature of the security environment is continuously altering the landscape in Africa, as most security scenario’s on the continent do not fit appropriately into the Africa Peace and Security Architecture framework, thereby hampering the preparedness of the African Standby Force for deployment to these conflicts. The new non-traditional threats include terrorism, violent extremism, climate change, smart technology, pandemics, transnational organized crime to mention a few.

The successful operationalisation of the African Standby Force will benefit the African continent by sustaining peace and providing it with a rapid and capable force that prevents conflicts and enforces peace on the continent.

ENERGY DEMAND AND SUPPLY SITUATION

Cabinet received and considered the report on the Energy Demand and Power Supply situation as presented by the Minister of Energy and Power Development, Honourable Zhemu Soda.

Cabinet noted with satisfaction that the Zimbabwe Electricity Supply Authority has announced the end to load-shedding as a result of the interventions implemented by the Second Republic thereby fulfilling the mantra “Nyika inovakwa nevene vayo/ Ilizwe lakhiwa ngabanikazi balo.”