KEY POINTS
- Zimbabwe plans to introduce incentives to promote local mineral processing.
- The initiative aims to enhance the country’s economic returns from its mineral wealth.
- Zimbabwe is Africa’s top producer of lithium and the third-largest holder of platinum reserves.
Zimbabwe plans to introduce incentives aimed at encouraging mining companies to process their mineral output locally, President Emmerson Mnangagwa announced at a mining conference in Bulawayo on Thursday. This initiative is part of a broader strategy to enhance mineral beneficiation and value addition in the country.
Drive for local value addition
Mnangagwa emphasized that “bold decisions must be taken” to accelerate the local processing of minerals, although he did not provide specific details on the planned incentives.
According to New Zimbabwe, the move aligns with a continent-wide effort to increase value addition before exporting natural resources, a strategy adopted by other African nations like Ghana and Nigeria.
Ghana, Africa’s leading gold producer, recently opened a new refinery, while Nigeria’s Dangote mega-oil refinery began operations earlier this year. These developments reflect a growing trend toward processing resources locally to reap higher economic benefits.
Zimbabwe’s rich mineral resources
Zimbabwe is home to the world’s third-largest platinum reserves, after Russia and South Africa, and has attracted significant investment from international mining companies like Zimplats Holdings Ltd. and Anglo American Platinum Ltd.
In addition to platinum, Zimbabwe is Africa’s top producer of lithium, a key material for electric vehicle (EV) batteries.
Chinese companies such as Chengxin Lithium Group Co. Ltd., Sinomine Resource Group Co. Ltd., and Zhejiang Huayou Cobalt Co. Ltd. have made substantial investments in Zimbabwe’s lithium sector.
Furthermore, over the past two years, the government has banned the export of unprocessed raw lithium and other base minerals to encourage domestic processing and maximize value.
