Mining sector promotes economic growth post-Uhuru

Judith Phiri, Features Reporter 

POST-independence gains in the area of mining, driven by the indigenous black people have indeed confirmed that the country did not get political independence only, but economic freedom too.

Before independence on 18 April 1980, the mining sector was a no-go area for blacks. Land and all the resources in its bosom were in the hands of the colonial regime. 

The Government, however, made deliberate steps to correct the distribution of wealth and some indigenous black people went into mining. 

Under the Second Republic, the mining industry has become one of the economic mainstays contributing about 70 percent of the country’s foreign currency earnings. 

Zimbabwe’s mining sector is highly diversified, with close to 40 different minerals. The dominant minerals include gold, platinum group metals (PGM), chrome, coal, lithium and diamond. 

The growth of the mining sector since 2018 has been tremendous, from a mere US$2,8 billion industry to the current levels of close to US$12 billion, while it has also positively contributed to the overall growth of the Gross Domestic Product (GDP). 

In an interview, Ministry of Mines and Mining Development, Permanent Secretary, Mr Pfungwa Kunaka said independence brought about inclusivity in the mining sector. 

“Zimbabwe’s independence from British colonial rule, on 18 April 1980, came with changes across all sectors of the Zimbabwean economy and the mining sector is no exception. Before independence, mine ownership was predominantly white, who were a minority. 

“Ownership patterns shifted after independence, allowing more indigenous Zimbabweans to participate in the sector and become involved in the nation’s economic development. 

The mining sector, post-independence, has become more inclusive, with most of the indigenous people in the small-scale sub-sector,” he said. 

He said the small-scale mining sector was producing slightly over 50 percent of all the gold produced in the country. 

Mr Kunaka said the involvement of the indigenous people in the mining sector cuts across various aspects, from mine ownership to providing essential services within the mining value chain.

On strategic partnerships, the Permanent Secretary said: “Local miners are now able to form strategic partnerships with investors and grow mining operations. This emanates from increased mining title ownership. Deliberate efforts have been made to dismantle colonial barriers that previously hindered indigenous populations from participating in the mining sector.”

He said post-independence Zimbabwe saw the formation of the Zimbabwe Mining Development Company (ZMDC), whose key purpose is to drive mining investment.

Mr Kunaka said additionally, the Minerals Marketing Corporation of Zimbabwe (MMCZ) was established to facilitate the marketing of Zimbabwe’s minerals transparently, for the benefit of the Zimbabwean citizenry.

He added: “Colonial legislation was crafted in a way that favoured the mining interests of the white minority. Currently, the Mines and Minerals Act amendments are at an advanced stage, awaiting gazetting by the Attorney General. The amendments to the Act are meant to ensure the needs of the black majority are protected and advanced.”

“In summary, independence allows for the celebration of opening up of the mining sector, to allow for the increased participation of the indigenous Zimbabweans into a sector that was almost exclusively white-owned.”

He said the country’s mineral wealth can further catalyse wider economic development if the national shortage of capital and interest rates are addressed, to ensure loans are available for the miners. 

As for the Zimbabwe Miners Federation (ZMF), a Government initiative to effect sustainable growth and meaningful transformation of the artisanal and small-scale mining industry, Independence Day symbolises the liberalisation of the mining sector.

Small and medium-scale miners continue to play a key role in the extraction of precious stones in the country.

According to ZimStat, during the fourth quarter of 2023, small and medium-scale miners produced 59 percent of the 8 198kgs, with 34 percent produced by large scale and seven percent from the secondary producers.

ZMF is Zimbabwe’s largest mining body, with over 1.5 million members, contributing an annual average of 60 to 65 percent of the total gold deliveries to Fidelity Printers and Refiners (FPR), the country’s sole gold buyer.

“Before independence, mining was only for the white people as most farms where they were had minerals. Us, the indigenous people were not allowed to mine,” ZMF chief executive officer (CEO), Mr Wellington Takavarasha said in an interview.

He said it was until around 1991, when the Government of Zimbabwe adopted a market-driven Economic Structural Adjustment Programme (Esap) that most artisanal and small-scale miners entered the mining industry. 

“Most of them started their mining operations or initiatives from 1991 to 1992 there about. 

This is when the indigenous people took up mining, though there were still some challenges for them to have their claims pegged. It was a challenge as the Mines and Minerals Act had some loopholes,” he said. 

Mr Takavarasha said the contribution of small-scale miners in the country was not being recognised and there were no associations to represent them, hence the formation of ZMF in 2003. 

He said ZMF contributed to the growth of the artisanal and small-scale miners, so that they could have a voice. 

“If you look at Africa, the first country to have associations such as ZMF was Zimbabwe followed by Zambia. We then started assisting other countries like Tanzania, with the Federation of Miners Association of Tanzania (Femata), which came later on around 2010. In countries like Kenya and Uganda, we have been assisting them to formulate the associations,” he said. 

Mr Takavarasha said ZMF has provided the platform for small-scale miners to sell their minerals to the Government and they were contributing 60 to 65 percent more than the large-scale mines. 

He said initially, the Mines and Minerals Act of 1961 did not acknowledge small-scale miners, but under the Second Republic, the new Mines and Minerals Amendment Bill incorporated them and covered gaps in the former Act.

“The roles of artisanal and small-scale miners have been set out, which should aid their formalisation to curb leakages. We are also grateful to the Government for the mining industry loan funds that cater to artisanal and small-scale miners to develop their operations. 

There are a lot of things being done post-independence for miners to be assisted. Indigenous people are now able to mine various minerals such as chrome, tantalite and gemstones among others.”

Zimbabwe Institute of Foundries (ZIF) chief operations officer (COO), Mr Dosman Mangisi said the mining industry has contributed immensely to the economy post-independence. 

“With over 40 strategic minerals, mining plays a critical role in Zimbabwe. 

The majority of Zimbabweans have got access to land and mining rights, with close to one million hectares of mining land in the hands of small and medium-scale miners, who are the indigenous people,” he said. 

Young Miners Foundation (YMF) chief executive officer (CEO), Mr Payne Kupfuwa said as young miners, they aimed to create more formal jobs and business opportunities in mining and its value chain for the youths. 

“One of the key goals, is increased formalisation and professionalisation of young miners, to create more formal jobs and business opportunities in mining and its value chain for the youths.

 The sector is open for young miners to formalise their operations, be it in gold, chrome, lithium and any other minerals, while also considering the value chain opportunities in the mining industry,” said Mr Kupfuwa. 

He said formalisation of youth miners, was a critical development that would see them positively contributing to the attainment of the US$20 billion and upwards,to the mining industry by 2030. 

The mining sector has registered unprecedented growth, with positive gains being realised from the Government’s economic reform agenda.

President Mnangagwa has had the privilege of commissioning various signature mining projects in the areas of exploration, extraction and expansion since the advent of the Second Republic.