Vusumuzi Dube
Judith Phiri, Business Reporter
THE confidence of both local and foreign investors in Zimbabwe’s mining sector is driving its growth with an anticipated strong recovery in 2025 projected to be driven by the seven percent output growth.
Mining has been a crucial driving force in Zimbabwe’s economy, making a significant impact by contributing 13 percent to the country’s gross domestic product (GDP) over the past few years.
It has been a major contributor to the country’s export earnings, accounting for a staggering 75 percent of its total exports. The Government has also set a new US$40 billion by 2030 target for the mining sector.
In 2025, positive commodity market conditions are anticipated that are expected to boost mineral revenue, increase employment levels and enhance capacity utilisation.
According to Mining Industry Prospects for 2025 report findings released on Thursday on the sidelines of the 27th Mining, Engineering, and Transport Expo (Mine-Entra) in Bulawayo, mining executives are confident about 2025 mining prospects.
The report commissioned by the Chamber of Mines and presented by one of the lead researchers, Dr Carren Pindiriri said the average capacity utilisation is expected at 90 percent in 2025 up from 84 percent this year.
Among other key highlights of the report the measured index for mineral output growth prospects for 2025 is 79,2, showing that respondent mining executives are generally optimistic about the prospects of ramping up production in 2025.
Approximately 80 percent indicated that they will ramp up production by up to 20 percent in 2025. On analysis of planned production targets shows that the mining sector output is expected to grow by a weighted average of around seven percent next year.
In a press conference on Wednesday, Mines and Mining Development Minister Winston Chitando said: “As you are aware there was a presentation on the state of the mining industry survey which was done by the Chamber of Mines Zimbabwe. They use the feedback from mining mining executives where they update Government on their views on the results of the survey. They update us as a Ministry and we would consider the findings of the Chamber to make sure that we take them forward.”
He said the major takeaway points from the presentation was that there is increased level of confidence compared to what was there before.
The Minister said there has been an increase in capacity utilisation that was also significant.
“The survey does highlight some challenges which in any mining sector of any particular country you will get, go to any part of the world every survey you will find that there will be challenges which the sector will identify,” he added.
“Yes, there are challenges they have identified in terms of energy and foreign currency. Suffice to say it’s a good survey and it shows that there is hope in the industry and increased confidence. The industry is on course to play its role in supporting the President’s vision of an upper middle-income economy by 2030 which day by day we are moving towards.”
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