Mining market trends in Zimbabwe

Trynos Nkomo

HAVING looked at the SWOT analysis we will this week look at the Market Analysis. For every business to work it should be able to make sales in order to raise income for the smooth function of the business. As we stated in the article last week that gold mining is lucrative and trends on the sales are that demand for the product is always increasing.

Market trends in Zimbabwe have improved over the past years as the country has managed to supply the product to more countries. There are a few variations as demand for the product changes but generally the country has experienced the biggest growth over the years. It is a common trend in the gold mining line of business to find mining companies positioning their business in locations and communities where they can have access to mines and good labour. If you locate your business where you have to travel a distance before you can access the gold mine, then you would have to struggle to make profits and maintain overhead and logistics. Also another trend in this line of business is that most registered and well organised mining companies look beyond the market within their locations or state, they ensure that they strike business deals with leading jewellery making companies so that they are able to spread their market and sell to a wider range.

When it comes to supplying product from gold mines, there is indeed a well-defined market. This goes to show that the target market for products from gold mining companies is far reaching. In view of that, we have conducted a market research and have ideas of what our target market would be expecting from us. We are in business to engage in supply of raw gold to the following organisations; jewellery production companies, electronic components manufacturing companies, art and culture companies, gold and silver merchant.

The competitive advantage is the availability of resources, ability to forward and sell production when appropriate and of course the ability to comply with environmental laws. One should be able to comply with Environmental Management Agency (Ema) rules and regulations in order to gain the competitive edge. To gain a competitive edge it requires a detailed analysis of the demographics of the surrounding area and the nature of the existing competitors. The business requires that one adopts successful and workable strategies.

The other competitive advantage is to have a vast experience of the management team, people who understand how to grow a business from scratch to becoming a national phenomenon. Lastly to gain another competitive edge the employees should be given packages so they are willing to help build the business and deliver the set goals and achieve all the aims and objectives.

The writer Trynos Khumbulani Nkomo, an Insiza miner, writes in his own personal capacity.