‘More incentives for value addition’

Mashudu Netsianda-Bulawayo Bureau

ADDITIONAL incentives will be granted to companies that invest more in local beneficiation and value addition to accelerate the industrialisation agenda and diversification of the economy through the production of high-value products for local and export markets, President Mnangagwa has said.

The Second Republic has committed to facilitate robust reindustrialisation of the economy through the adoption of modern technology and optimising sustainable exploitation of natural resources to achieve higher growth targets in line with Vision 2030 projections.

In his keynote address at the 27th edition of the Mining, Engineering and Transport (Mine Entra) Expo in Bulawayo yesterday, President Mnangagwa said the era of exporting cheap raw commodities must come to an end, as he challenged local producers to fully embrace domestic value addition and beneficiation.

“Additional incentives and support will be provided to companies that invest in local beneficiation and value addition,” he said.

“Policy frameworks, which provide incentives for linkage development, catalyse investments in skills development and access to capital, among others, will be constantly reviewed.”

President Mnangagwa said the thrust towards value-addition-driven mining sector transformation must be anchored on technological advancements and aligned to the global shift towards renewable energy sources.

“More companies, professionals and stakeholders in the field recognise that the key to staying competitive and sustainable lies in the ability to adopt new technologies that boost process efficiency and resource optimisation,” he said.

“These technologies ensure the exploitation of new and more complex mineral deposits, increase productivity and precision in exploration and extraction processes. This allows for remote operations, reduced waste, improved equipment utilisation as well as lower maintenance costs, among others.”

In reference to the Mine Entra theme, “Unearthing Success: The Mining Value Chains, Innovation and Industrialisation Nexus”, President Mnangagwa said value addition and beneficiation were at the heart of the Government’s push for leveraging local capacity in science, technology, and innovation as engines of modernisation.

By focusing on mining value chains, Zimbabwe would derive maximum value from its mineral resources, contributing to sustainable development.

President Mnangagwa said minerals such as gold, platinum, and lithium, which are abundant in Zimbabwe, play a key role in modern industries, including the production of smartphones, electric vehicles, and renewable energy systems.

“It is indeed through greater focus on mining value chains that we will derive maximum value from our mineral resources for sustainable development,” he said.

“As you are aware, everything we depend on is either made from minerals or relies on minerals for its production. Minerals, from rare earth elements to gold, platinum and lithium, are the building blocks of modern societies, with micro components of smartphones and larger modern materials required for electric vehicle manufacturing and renewable energy systems, all dependent on the mining sector.”

Guided by the above focus areas, President Mnangagwa said the Government expects the mining sector to drive industrial and technological advancements, and urged players in the industry to freely approach policymakers for continued improvements that advance the sector.

President Mnangagwa also urged mining companies to prioritise local procurement in line with the Local Content Policy and the Buy Zimbabwe Campaign, which aims to grow the domestic economy and create jobs.

“Through the implementation of these and other measures, we will indeed be able to attain our Africa mining vision of ‘transparent, equitable and optimal exploitation of mineral resources to underpin broad-based sustainable growth and socio-economic development’ across the continent,” he said.

President Mnangagwa reiterated that Zimbabwe was open for business and welcomes all new investments in the mining sector for win-win benefits.

Earlier, President Mnangagwa toured various stands at the expo, commending the innovations exhibited, which he said are crucial to Zimbabwe’s continued development.

“Every year, we visit these exhibitions and we get positive surprises. They continue to improve and this shows growth and the development of our nation,” he said.

“We really need the innovation that is being exhibited here for us to continue building our country. Young people should master that they are the ones who should build this nation.

“As such, they should embrace what I have always said: ‘nyika inovakwa nevene vayo/ilizwe lakhiwa ngabaninilo’ and embrace it because no one will do it for them.”

President Mnangagwa commenced his tour at Rema Tip Top stand before proceeding to Fidelity Gold Refinery, Ministry of Mines and Mining Development, CIH Industries, Shepco Holdings, Annolle Castins and Engineering, among other stands.

Vice President Constantino Chiwenga, who accompanied President Mnangagwa, also praised the mining sector for demonstrating resilience in the face of challenges such as energy deficits and global commodity price volatility.

“The industry has not only survived but triumphed, contributing significantly to our GDP at around 14 percent. Mining in our country is indeed a major source of foreign currency, employment and overall economic growth,” he said.

VP Chiwenga attributed the sector’s success to sound strategic policies under President Mnangagwa’s leadership, including engagement and re-engagement efforts and strong Government-industry partnerships.

He stressed that the mining sector, under the President’s leadership, catalyses industrialisation and economic growth.

“Of course, we are grateful for the tireless work of all stakeholders involved in the mining sector. As Government, our thrust is to make the mining industry remain competitive on the global stage,” he said.

“Under the able leadership and guidance of His Excellency, President Mnangagwa, the mining sector serves as a catalyst for industrialisation, thereby creating positive ripple effects throughout the economy.”

VP Chiwenga described President Mnangagwa as a champion for transformation who continues to guide the nation towards prosperity.

“It’s common knowledge that mining and other allied industries are capital-intensive, which requires significant capital injection,” he said.

“In that regard, our Government under the wise leadership of President Mnangagwa continues to ensure that investment in the sector is on a win-win basis.”