adminarmchair critics we will try to proffer solutions that we think can turn around the fortunes of our country
Zimbabwe is considered among countries that are highly endowed with mineral wealth, with the Great Dyke holding rich ore.
In terms of platinum we are second to South Africa with Zimplats alone having a resource base higher than that of Impala in South Africa.
In just a short space of time since the discovery of diamonds in Chiadzwa, Marange, our diamond mining sector is now among the top five in the world.
The United Sates of America once listed our chrome among the world most strategic resources.
Though our asbestos mines in Zvishavane are mothballed, we are among the top three producers in the whole world.
The export bill of Zimbabwe is basically comprised of extractive natural resources and the output is consistent. However, there is need for collective effort to increase the value and output of our precious minerals.
So why are we so poor yet so rich?
For a long time agriculture has been anchoring our economy, but sadly a series of droughts, and various climatic shifts has had a detrimental effect on the growth and success of this critical sector.
Yes, while we may regain our breadbasket position in Africa it seems unlikely that we can compete at a global level.
In a presentation on the review of the Medium Term Plan 2012, the World Bank noted that Zimbabwe is shifting from an agro-based economy to an economy, which is greatly supported by mining.
In Africa and Zimbabwe in particularly the mining sector has emerged as the lead contributor to Gross Domestic product growth.
In Mozambique the mining sector has changed the face of that country, with massive investments pouring in from around the world to rehabilitate railway, road and energy infrastructure.
In a short space of time Tete Province, once known to be habitat of the wretched of the earth, has been given a new lease of life and now seems to be the most viable and cost-effective route for exporters.
Recently ZimTrade boss Ms Sithembile Pilime was quoted as encouraging companies in Zimbabwe to take advantage of the boom in Mozambique.
Some large corporates in Zimbabwe are already exporting to Mozambique with PPC and PG taking the lead.
Mozambique’s transformation is largely due to investments in the mining industry and how these investments have unlocked value for the agricultural industry.
With a better rail and road infrastructure, new agricultural plantations have risen that are targeting exports of produce from Africa to the rest of the world.
Apart from Mozambique our neighbours to the north, Zambia, who were once among the least developed in the world, have used mining to spur developments in other sectors. Today, Lusaka (albeit full of South African products) is a new place. There are at least five new multimillion-dollar malls in that city.
Many other retail developments across the country are also springing up.
All this is happening because there is a realisation in Mozambique, Zambia and other parts of the world that mining is a tried and tested industry with the ability to attract massive foreign capital inflows.
And thanks to the boom in India and China, perceptions do not count much when it comes to investors deciding to invest in the mining industry.
As long as policies are deemed to support investment, there is a stable political environment and money can be made, few miners bother spending too much time following Asiagate or such related stories.
The truth is thus mining can transform an economy, however, if left to its own devices, mining can become a basis for social strife as most evident in the Marikana incident.
The key, as we have witnessed in Mozambique and Zambia, is mining development to be pursued cognisant of the other sectors such as agriculture, manufacturing, energy and telecommunications.
Conservative estimates put the current contribution of mining industry to Zimbabwe’s gross domestic product at above US$3 billion.
The figure is set to rise given at least 10 new developments are underway.
In addition, increased investment inflows to replace outdated equipment, is likely to unleash significant impetus to the growth of the sector.
The question, though is, are we prepared to ensure that these investment inflows find their way to other economic sectors in the country?
Additionally, how much of this money will find itself into the hands of local suppliers? Will this investment once again be geared towards providing jobs and create wealth in neighbouring South Africa?
As we seek to find space for mining in our national development, we must start ensuring that local suppliers, manufacturers and agricultural producers are ready to tap into this precious resource.
Fortunately, the Chamber of Mines seems to have come to an understanding on the need to situate itself in this key discussion and through its Joint Suppliers and Procurement Sub-Committee partnered Buy Zimbabwe to organise a suppliers forum on March 23.
The forum will see policymakers, industry leaders, financial institutions and suppliers coming together to make a pledge for their own local procurement pledge.
As usual, our wish is that as Zimbabweans we will put our money where our mouths are by actively and positively contributing to making the suppliers forum a resounding success. The time to Buy Zimbabwe is now.
Vandudzayi Zirebwa is an economist with Buy Zimbabwe. She can be contacted via email: [email protected] or cell 0773751878
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