Local content key to unlocking mining sector growth

LOCAL content development and supplier participation are increasingly recognised as critical building blocks for a resilient, inclusive and sustainable mining industry, with growing calls for Zimbabwean businesses, manufacturers and small-to-medium enterprises (SMEs) to play a bigger role in mining value chains.

As Zimbabwe seeks to leverage its vast mineral wealth to accelerate industrialisation and economic growth, industry stakeholders say strengthening local procurement and developing domestic suppliers could unlock significant opportunities for local companies while reducing dependence on imported goods and services.

The issue is expected to feature prominently at this year’s Mine Entra exhibition, which will run under the theme, “Beyond Extraction: Sustaining the Future of Mining”, a reflection of the growing emphasis on ensuring that mining creates broader economic benefits through manufacturing, skills development, employment creation and community empowerment.

Zimbabwe’s mining sector remains one of the country’s largest foreign currency earners and a key contributor to export revenues.

However, despite the sector’s growth, a substantial portion of mining inputs continues to be sourced from outside the country, highlighting opportunities for local firms to participate more meaningfully in supply chains and retain greater value within the domestic economy.

Bulawayo-based industrialist Mr Benson Ndaniso said local procurement has immense potential to stimulate broader economic growth.

“The mining industry has enormous potential to stimulate industrial growth through local procurement. When mines source goods and services locally, they support domestic industries, create jobs and strengthen economic linkages across various sectors,” he said.

Mr Ndaniso said deliberate efforts were needed to strengthen supplier capacity and ensure local companies meet mining industry standards.

“Local companies must be supported through training, financing and technology transfer programmes so that they can effectively compete for procurement opportunities in the sector.”

Evidence of the growing emphasis on local procurement is already emerging within the mining sector.
In its latest Environmental, Social and Governance (ESG) Report, Caledonia Mining Corporation chief executive officer Mr Mark Learmonth said the company had significantly increased local sourcing.

“For the first time, in 2025 local procurement share (55 percent) exceeded foreign purchases (45 percent),” he said.

The local procurement interventions were undertaken for key operational requirements including explosives, cyanide, trackless mobile machinery, drilling consumables, and loader and loco spares.

“Two of the main initiatives included the supplier incubation initiative and local capacitation through consignment stocking.”

Mr Learmonth said five local suppliers had been identified under the incubation initiative and received targeted business development support.

“Five local suppliers were identified as part of the incubation initiative and assisted with business growth through targeted support. Consignment stocking started in Q4 2025, whereby foreign purchases were replaced through agreements with local suppliers, which has involved engagement on pricing and stock levels.

“Focus areas for 2026 include continuous collaboration and visits with local suppliers, continuation of the incubation initiative and completion of consignment agreements for identified products.”

Economist Ms Alice Chikonzi said integrating local manufacturers into mining supply chains could significantly boost industrial output while lowering the country’s import bill.

“The mining sector should serve as a catalyst for industrial development. If local manufacturers are integrated into mining supply chains, we can create a strong domestic industrial base while reducing import dependency,” she said.

Ms Chikonzi added that countries that had successfully transformed their economies through mineral resources had deliberately promoted local content and value addition.

“Mining should not be viewed in isolation. It must support manufacturing, logistics, engineering and technology sectors. This creates multiplier effects throughout the economy.”

The local content agenda is expected to gain further momentum through Government’s Integrated Provincial Special Economic Zones (IPSEZs), which are designed to leverage each province’s natural resource endowments and economic strengths.

Under the framework, mining-rich provinces could become centres for mineral beneficiation, engineering services, equipment manufacturing and related industrial activities, ensuring greater value retention within local economies.

Industry stakeholders say the model has the potential to transform mining communities from extraction centres into diversified industrial and commercial hubs by attracting investment into processing plants, fabrication workshops, logistics facilities and manufacturing enterprises.

Hwange-based development analyst and miner Ms Nomusa Ndlovu said mining-linked industrial clusters could create new opportunities for businesses and communities.

“The development of industrial clusters linked to Hwange’s coal resources could also attract investors in power generation, construction materials and chemical production, helping transform the province into a major industrial hub.

“Local businesses would benefit from increased procurement opportunities, while improved infrastructure such as roads, rail networks and power supply would support broader economic development,” said Ms Ndlovu.

She said the provincial economic zones could help retain more mining value within local economies through beneficiation and manufacturing activities linked to coal, gold and lithium resources.

“Once fully implemented, the provincial special economic zones could help reverse migration from mining communities by creating sustainable employment opportunities, improving access to infrastructure and supporting the growth of local industries.”

Ms Ndlovu said supplier parks and industrial clusters around mining operations would create easier access to procurement opportunities for SMEs.

“In addition, the establishment of supplier parks and industrial clusters around mining areas would provide SMEs with easier access to mining companies, enabling them to supply goods and services ranging from engineering products and transport solutions to catering, accommodation and maintenance services,” she said.

Ms Ndlovu added that infrastructure upgrades and skills development would be among the major benefits.

“Improved infrastructure is another anticipated benefit. As investors establish operations within the special economic zones, roads, power supply, water systems, telecommunications and other critical infrastructure are expected to be upgraded, thereby improving the quality of life in mining communities and supporting broader economic activity.

“The zones are also expected to promote skills development through partnerships between industry, universities, technical colleges and vocational training institutions, creating a pipeline of skilled workers for both mining and manufacturing industries,” she said.

Stakeholders say SMEs are expected to play an increasingly important role in supporting mining operations through transport, civil works, accommodation, catering, security and equipment maintenance services.

Expanding SME participation in mining supply chains is expected to improve income generation and economic inclusion, particularly in mining communities, while creating opportunities for women and youth owned enterprises.

As Zimbabwe continues to attract investment into gold, lithium, platinum and chrome mining, stakeholders believe local content development and the rollout of Integrated Provincial Special Economic Zones will be critical in ensuring the sector delivers broad-based economic transformation.

With Mine Entra 2026 drawing closer, industry players increasingly agree that the future of mining lies not only in extracting minerals, but also in building strong domestic supply chains that maximise local participation, drive industrialisation and ensure the benefits of Zimbabwe’s mineral wealth are more widely shared.