The Government’s goal of creating a US$12 billion mining industry may be exceeded by the earlier set 2023 deadline. This is according to Mines and Mining Development Minister Winston Chitando. The minister said that the mining industry target fitted into the Government of Zimbabwe’s vision, as earlier indicated by President Mnangagwa, of revolutionizing the country into an improved middle income society by vision 2030.
Quoting the President’s ‘Zimbabwe is open for business mantra’, Chitando said the country has a potential for success especially in the mining industry owing to diverse mineral endowments, numerous skilled personnel and availability of capital from investors. The minister was speaking during a ceremony organized by Kuvimba mining house for presenting a US$ 5.2 million dividend to shareholders.
Kuvimba, a joint venture between the Government and private investors, declared its initial dividend just 12 months after being launched.
The mining sector contributes close to 65 percent of Zimbabwe’s exports per year. In addition to that, it contributes more than 12 percent to gross domestic product GDP, let alone creating employment to hundreds of thousands of people.
According to Zimbabwe’s Treasury, the growth of the mining sector will surpass the overall aspired economic development indicated in the National Development Strategy (NDS 1), the Government’s medium term economic plan.
The minister said that upon the launch of the US$12 billion milestone in 2019, most people assumed that it would be an easy task.
Taking an example of Kuvimba mining house; and quoting Kuvimba’s Chief executive officer, David Brown, the minister said that mines needed time to be constructed and to fully reach their potential.
“He (David Brown) outlined progress on the work being done in resuscitating other old mining operations… this is just at Kuvimba. There are several other (mining) initiatives by various investors, small, medium and large scale. With layers like Kuvimba, we can only have faith and be certain that we are moving in the right path towards achievement of the $12 billion target. It will be achieved and is in the process of being achieved,” Minister Chitando said.
He also said that Zimbabwe, in addition to having other competitive advantages in the mining sector, also had skilled human resource, a key factor in the exploitation of the country’s mineral resources.