Articles

• Oct 20, 2014
• Kwame Mutumbanje

Zimbabwe
There is no doubt that Zimbabwe is endowed with vast mineral resources, the climate and literacy rate support a good investment environment. The early millennium era ushered a new era for the country when sanctions were imposed on the country. According to financial analysts Zimbabwe lost $42 billion and still counting.

Nationalisation of resources was a macabre argument amongst investor contribution and control of the asset but that was seasonal as we has seen Tanzania, Kenya also adopting the same stance on their finite resources. Investors have come to understand the concept and African states are slowly adopting it too.

However this did not deter other countries like China, Malaysia and Russia from investing in the country, this can be testified by the recent bilateral transactions between the countries. Zimbabwe bosting of having the second largest reserves of platinum saw an establishment of Joint Venture called the Great Dyke which compromises of Zimbabwe Mining Develop Corporation and a Russian consortium made up of three entities including the National Bank. Investment levels are expected to reach $4, 2 billion dollars over a period of 10yrs. It is also expected to create a lot of employment. Great Dyke will also put up a refinery which is in support of the government beneficiation programme.

Minister Chinamasa in a bid to revitalise the sector we have also witnessed the Sino mega deals between the Chinese and Zimbabwean government. This has seen an open check for capitalisation being awarded to the government for any feasible and bankable projects in Zimbabwe.

The overhaul of policies by Minister Chidhakwa has also slowly brought sanity to the way mining assets were being handed over. The following are some of the good works done by the Minister of Mines in order to turn around the sector:
• Nullification of the Chief Mining Commissioner post and replacing it with Regional Directors. This diluted powers which were concentrated in one post.
• Reduction of application fees for claims and licenses
• Trade of diamonds on the international market
• Engagement of small scale miners
• Initiative to reduce mining houses in the Chiadzwa diamond fields to either 1 or 2. This will bring accountability of royalties that are supposed to go to the government
• Dissolving and appointing new board members at Minerals Marketing Corporation of Zimbabwe, Zimbabwe Mining Development Corporation and Marange Resources
• Steadfast stance on mining houses to construct beneficiation plants
• Local Diamond auctioning which started on the 7th of October 2014 and expect a bigger auction in November.

With this kind of approach a comparative analysis will show you that Zimbabwe is in a peculiar position to bring back its ‘90s glory in the mining sector by regaining confidence of the investors and with the clinical approach of the minister who is leaving no stone unturned the dream is attainable.