Investment Opportunities Exist in Exploration and Value Addition – Chiwenga
There are numerous opportunities to invest in greenfield exploration and value addition for over 60 tradable minerals found in Zimbabwe, Vice President Dr. Constantine Guvheya Chiwenga said.
By Rudairo Mapuranga
Speaking at the investment conference held during the 7th SADC Industrialisation Week on Monday, Vice President Chiwenga highlighted that Zimbabwe is endowed with over 60 tradable minerals that are critical to the world’s technological advancement.
“Zimbabwe is open to new investments in the energy sector, and investors can explore opportunities in renewable energy sources such as solar, wind, hydro, and thermal energy, including gas and coal. As you may be aware, Zimbabwe is among the countries in the world endowed with over 60 tradable minerals such as gold, platinum, diamonds, coal, nickel, and 17 rare earth elements that are critical in a technologically driven world. Investment opportunities, therefore, exist in greenfield exploration, value addition, and beneficiation. These opportunities can be explored through joint ventures with various companies and by providing financial and technical support to small-scale miners,” Dr. Chiwenga said.
Dr. Chiwenga also mentioned the opportunity for Zimbabwe to manufacture lithium batteries and subsequently become a key player in the electric vehicle manufacturing industry, urging Southern Africa Development Community (SADC) countries to prioritize beneficiation and value addition of minerals.
“Zimbabwe presents opportunities for lithium beneficiation and, in the long term, the manufacturing of lithium batteries, positioning the country as a key player in the electric vehicle manufacturing industry. SADC Member States should capitalize on these resources and invest in value addition and beneficiation to maximize foreign currency earnings and develop our own skills,” the Vice President of Zimbabwe said.
The theme of this year’s SADC Industrialisation Week is “Promoting Innovation to Unlock Opportunities for Sustainable Economic Growth and Development towards an Industrialised SADC.” This investment conference aligns with the SADC Industrialisation Strategy and Roadmap, aiming to enhance the environment for industrial development, improve investment efficiency, and create regional value chains.
The objective of this investment conference is to expedite the implementation of the SADC Industrialisation Strategy and Roadmap and identify industrialisation projects for joint implementation by the public and private sectors in SADC Member States. This conference offers a platform for local, regional, and international investors to explore potential investment opportunities within the SADC region, network, establish collaborations, and showcase transformative investment projects.
The SADC region holds significant investment potential. According to SADC reports, its 16 Member States contribute 27.78% of Africa’s GDP and attracted 55.10% of total foreign direct investment inflows in Africa in 2021. The region boasts valuable minerals, offering investment opportunities in extraction, beneficiation, and value addition. Recent discoveries of lithium in the Democratic Republic of Congo and Zimbabwe present opportunities for lithium beneficiation and, in the long term, the manufacturing of lithium batteries and becoming a key player in the electric vehicle manufacturing industry. SADC Member States should capitalize on these resources and invest in value addition and beneficiation to maximize foreign currency earnings and develop our own skills.
It is high time that the region becomes self-reliant and stops depending on other countries for goods that can be produced locally. In light of these resources, SADC adopted the Regional Infrastructure Development Master Plan in 2012 at the 32nd Summit of SADC Heads of State and Government, held in Mozambique. This plan upscaled the development of priority projects across six clusters: energy, water, transport, meteorology, tourism, and information communication technology.
The SADC Secretariat has developed a compendium of SADC investment opportunities, which highlights 45 key regional projects in infrastructure development. These should be implemented as they are essential for sustainable regional growth. The Africa Continental Free Trade Area presents opportunities for the SADC region to position itself as a premier investment destination in Africa. Collaboration to enhance productive capacities, competitiveness, and attract foreign direct investment is crucial. The region must leverage its comparative advantages such as peace and stability, an educated populace, natural resources, a favourable climate, and integrated transport infrastructure to boost productivity and seize trading opportunities under the African Continental Free Trade Area.
In 2006, SADC adopted the Protocol on Finance and Investment to promote investment in the region. This protocol encourages Member States to attract investors through favourable policies and regulations. The SADC Industrialisation Strategy and Roadmap emphasizes deeper integration to facilitate increased FDI inflows and integrate regional industries into global value chains. Member States are urged to implement these investment-friendly policies to attract FDI, increase production and productivity, and facilitate technology and skills transfers. Competitive policies that attract and protect investments, as well as incentivize private sector investment, are needed to stimulate economic growth.