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Business Reporter
Zimbabwe is positioning mining as a key driver of value addition and industrialisation through several projects in the Zimbabwe Investment and Development Agency (ZIDA) Prospectus, which seeks to reduce reliance on imported mineral products and strengthen domestic processing capacity.
ZIDA’s approved investments prospectus details bankable projects in high-potential sectors such as mining, agriculture, energy (renewables like solar) and tourism.
Mining currently contributes a weighty 13 percent to the country’s Gross Domestic Product and remains a major source of employment and export earnings, accounting for over 75 percent of the country’s shipments.
However, analysts say Zimbabwe has historically exported raw minerals while importing processed metals, equipment and inputs, a pattern ZIDA’s mining value addition investment portfolio seeks to reverse.
“The Prospectus features value addition and manufacturing projects aimed at supporting import substitution, export growth, and deeper regional market integration,” ZIDA said, noting that mining-linked manufacturing is central to this objective.
ZIDA’s mining pipeline includes opportunities across exploration, extraction and downstream processing, particularly for lithium, graphite, coal and base metals. Analysts say the emphasis on beneficiation is crucial for import substitution.
Mining economist, Mr Munyaradzi Kaseke, said Zimbabwe imported significant quantities of steel products, alloys and industrial inputs despite having abundant mineral resources.
“Value addition is where import substitution happens in mining,” he said. “If you process locally, you reduce imports of finished metals while earning more from exports.”
The SIRDC Integrated Foundry project is a prime example of mining-to-manufacturing linkages. By converting locally mined iron ore into cast and forged products, the project supports mining output while displacing imported industrial components.
Mining-led import substitution also extends into agriculture and manufacturing through projects such as the coal-to-fertiliser plant. By using local coal to produce fertilisers, Zimbabwe links its mining resources directly to food security and industrial growth.
“This is smart industrial policy,” said development economist, Ms Rudo Ndlovu. “You mine locally, process locally and use the output to support other sectors. That reduces imports across multiple value chains.”
ZIDA’s mining portfolio includes lithium and graphite projects, minerals that are increasingly critical for batteries, energy storage and green technologies.
While much of the output is export-oriented, analysts argue that domestic processing is key to reducing dependence on imported battery materials and components.
“With the right investments, Zimbabwe can move from exporting concentrates to supplying processed materials regionally,” Mr Kaseke said. “That changes the import-export equation completely.”
ZIDA says mining investments are being supported through improved supporting infrastructure such as roads, streamlined licensing and policy reforms designed to attract long term capital.
The focus is on sustainable mining practices that integrate beneficiation and local industrial development.
Analysts note that mining-led import substitution does not mean cutting off imports entirely, but strategically replacing those that can be produced competitively at home.
“When mining feeds manufacturing, and manufacturing feeds agriculture and infrastructure, you build a self-reinforcing economy,” Ms Ndlovu said.
As Zimbabwe targets higher mineral exports and deeper industrialisation, ZIDA’s mining portfolio signals a shift away from raw extraction towards value addition, positioning the sector not only as an export earner, but as a foundation for import substitution and broad-based economic growth.
