Zimbabwe’s mines said this week expansion projects, along with projected bullish international mineral prices, will help the industry achieve 7% growth this year, defying a tougher tax regime and punitive lending rates.
This growth would be ahead of 5% in 2024, and 4% the previous year.
“In the outlook for 2025, the mining sector’s output is projected to grow by a weighted average of approximately 7%, while mineral revenue is expected to increase by around 10% to approximately US$6 billion, up from around US$5,5 billion in 2024,” Chamber of Mines of Zimbabwe (CoMZ) chief executive officer Isaac Kwesu told the Zimbabwe Independent.
“This growth will be driven primarily by ongoing expansion activities and an anticipated recovery in commodity prices in 2025. Gold production is expected to increase by 9% to around 41 tonnes, whilst platinum is expected to increase by 4% and diamonds by 10%,” Kwesu said.
The government has aggressively pursued the last remaining formal companies, including mines, with higher taxes and broadened the base from which they are collected.
The strategy is to make up for leakages occasioned by a switch to the informal sector, with companies avoiding high costs of doing business confronting formally-registered corporations.
The government sees in mines — which mostly earn exclusively in foreign currency — the base from which to deal with its revenue crisis.
The CoMZ CEO said while these factors have been drawbacks, miners were negotiating with government.
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“The overall tax framework for the mining industry needs to be reviewed to improve the competitiveness of the sector and ensure it is also comparable with other mining jurisdictions,” he said.
“This will improve viability and foreign direct investment inflows into the country. We continue to engage government for an optimal and competitively benchmarked tax framework for the mining industry that is aligned to regional and international best practice.
“There is always need to strike a balance between the long-term objective of maximising government revenue collections from the mining sector and ensuring that the sector (tax base) continues to grow to sustain the revenue requirements.”
Mineral export earnings increased by 9% to US$5,9 billion last year, driven by improved output of key minerals like gold, chrome and coal, Kwesu said.
He said gold production was a standout performer, increasing by 21% to 38 tonnes in 2024, with revenues surging by 37% to US$2,5 billion.
However, not all minerals fared well. Platinum production fell by 1% due to price declines, while nickel output dropped by 15%.
