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Mines and Mining Development Deputy Minister Gift Chimanikire confirmed in an interview last week that Zimbabwe was being represented by the Government and private players under the Chamber of Mines.
“We have representatives from Government’s mining institutions that include Zimbabwe Mining Development Corporation as well as private players under the Chamber of Mines,” he said.
The indaba will provide Zimbabwe an opportunity to highlight existing investment opportunities and also clarify some misconceptions on the indigenisation law, a policy some analysts believe is deterring the meaningful inflow of investment into the sector.
The empowerment policy requires foreign owned companies, including mines and banks, to localise at least 51 percent of their shares.
Over the past few years, Zimbabwe has also been holding mining conferences, which have generated interest among foreign investors.
Mining has been the major driver of the economy since 2009 after the formation of the coalition Government and adoption of multi-currency system.
This year, mining is anticipated to remain the major driving force behind overall economic growth, benefiting from further private capital injections and firming international commodity prices, Finance Minister Tendai
Biti said in his 2012 National Budget.
Renaissance Capital has forecast that Zimbabwe’s mining sector would achieve double-digit growth over the medium term which will boost output to between 12 and 13 percent of Gross Domestic Product by 2015,
despite growing concern over the country’s indigenisation policy.
Currently, the mining sector accounts for 6 to 7 percent of GDP.
Renewed activity at existing gold mines, contributions from recent diamonds and increasing platinum output will fuel the sector’s growth.
While the outlook for the mining industry is positive, the industry remains beset by significant challenges, which implies that although the growth rate is exceptional it remains below potential.
These challenges include erratic power supplies and capital constraints.
Online Reporter