Online Reporter
Nqobile Bhebhe [email protected]
Zimbabwe’s mining industry is sourcing about 70 percent of its procurement requirements through local suppliers, but the country’s manufacturing sector remains underdeveloped, with only US$410 million worth of mining inputs being produced locally, the Chamber of Mines of Zimbabwe has said.
Addressing delegates at the Mine Entra Suppliers Symposium in Bulawayo on Wednesday, Chamber of Mines of Zimbabwe chief executive officer Dr Isaac Kwesu said the figures demonstrate the urgent need to strengthen domestic manufacturing so that the mining sector’s growing procurement spend translates into greater industrialisation, job creation and value retention within the economy.
The symposium is held under the theme, “Enhancing Local Content in the Mining Value Chain.”
“As the Chamber of Mines, our vision is to foster a strong, broad-based and inclusive mining industry supported by a vibrant, competitive upstream sector.
“Strong backward and forward linkages between mining and local suppliers are essential for maximising the sector’s macro-effects, stimulating industrial growth, creating employment opportunities and ensuring that the benefits of mining are shared across the entire economy,” he said.
Dr Kwesu said the symposium’s theme resonates with Zimbabwe’s drive to deepen value addition and industrialisation as the country pursues Vision 2030.
“This year’s theme, Enhancing Local Content in the Mining Value Chain, is both timely and strategic.
“As Zimbabwe continues to expand its mining industry and pursue Vision 2030, there is an increasing need to ensure that greater economic value supports empowerment and promotes the broad-based growth of our country.
“This can only be achieved if we spread meaningful participation across the entire mining value chain, from the suppliers of goods and services to manufacturing, engineering, logistics, construction, energy and infrastructure development.”
He said findings from the Chamber’s 2025 State of the Mining Industry Survey indicates both the progress achieved and the challenges that remain in building stronger domestic industrial capacity.
Dr Kwesu said the survey showed that of the US$8.4 billion generated by the mining industry in 2025, approximately US$3.4 billion, representing 40 percent of total industry revenue, was spent on suppliers covering products and services, electric power, machinery, transport, chemicals and other critical mining inputs.
He noted that local procurement now accounts for around 70 percent of mining companies’ procurement budgets.
“Whilst it is commendable that 70 percent is sourced locally, it is still worrisome that only 70 percent of this figure, US$410 million, is manufactured locally.
“In other words, of the US$3.4 billion, only US$410 million was manufactured locally, with the balance largely constituting imported products distributed through local suppliers.”
Dr Kwesu said the figures underscore the need to expand Zimbabwe’s manufacturing base to enable local industries to produce more mining inputs and retain greater value within the domestic economy.
He said the mining sector continues to maintain extensive linkages with other productive sectors.
“Notwithstanding, the mining sector continues to maintain strong links with other sectors of the economy, with its expenditure constituting about 12 percent on electric power, 4.5 percent from distribution, 3 percent from non-electrical machinery, 1.5 percent on plastic and rubber, 1 percent from fibres, while 17 percent came from mining itself.”
Beyond direct expenditure, Dr Kwesu said the sector’s broader contribution to economic growth is amplified through strong multiplier effects.
“The mining sector currently has an estimated multiplier of three, meaning that for every dollar generated by the mining industry, an additional three dollars is created elsewhere in the economy through business ventures and business-to-business linkages.”
