Zimbabwe’s mining sector anticipates a 7% growth in 2023, fueled by expansion projects and favorable mineral prices. This growth is projected to prevail despite increased taxes and lending rates, with mineral revenue expected to rise significantly. Discussions with the government aim to address the challenges faced by formal mining businesses, emphasizing the sector’s vital role in the national economy.
Zimbabwe’s mining sector is poised for a recovery in 2023, expecting a growth rate of 7%, driven by expansion projects and favorable international mineral prices. This anticipated growth surpasses the expected 5% growth in 2024 and 4% from the previous year. Isaac Kwesu, CEO of the Chamber of Mines of Zimbabwe (CoMZ), forecasts that mineral revenue may rise significantly to around US$6 billion in 2025, an increase from US$5.5 billion in 2024, led primarily by expansion activities and rising commodity prices.
Gold production is projected to increase by 9%, reaching approximately 41 tonnes, while platinum and diamond outputs are expected to grow by 4% and 10%, respectively. Despite facing a challenging tax environment and high lending rates, the mining industry remains hopeful. The government’s tax strategy targets formal companies, including mines, to counteract revenue losses due to the informal sector, which has driven some businesses away from formal registration.
Miners are actively engaged in discussions with the government regarding these challenges, working towards mutually beneficial solutions. Given that mines predominantly operate in foreign currency, the government views them as crucial contributors to alleviating the national revenue crisis. The industry’s resilience, alongside potential price recoveries, signals a cautiously optimistic outlook for Zimbabwe’s mining sector in the coming years.
In conclusion, Zimbabwe’s mining sector is on track for a notable recovery, with expectations of 7% growth in 2023, bolstered by expansion initiatives and rising mineral prices. Despite challenges posed by higher taxes and interest rates, the alignment of industry efforts with government negotiations signifies potential for future revenue increases and overall sector stability. The anticipated growth in gold, platinum, and diamond production further supports this positive outlook.
Original Source: africanminingmarket.com
