Across Zimbabwe’s mining sector, companies are increasingly recognising the strategic value of developing local enterprises and strengthening domestic supply chains.
By Ryan Chigoche
Notably, Platinum Group Metals (PGM) miners such as Zimplats and Mimosa have long championed Local Enterprise Development (LED) and Supplier Support programs, investing heavily in nurturing small and medium-sized enterprises (SMEs) that supply critical goods and services.
These efforts have reduced reliance on imports, cut costs, and generated thousands of jobs, with Zimplats alone investing nearly US$460 million into local businesses and creating over 2,600 positions since launching its LED initiative.
Their success underscores a wider industry trend to future-proof operations through local sourcing, a trend Caledonia Mining Corporation, one of the country’s leading gold miners, has embraced with impressive results.
Faced with global supply chain disruptions, energy shortages, and raw material scarcity challenges, particularly acute in the SADC region, Caledonia has made local procurement a cornerstone of its sustainability and resilience strategy at Blanket Mine.
Today, 40% of the company’s raw materials and operational supplies are sourced locally, demonstrating how deliberate investment in local supply chains can simultaneously strengthen operational efficiency and community development.
This approach is not merely reactive but part of Caledonia’s broader commitment to embed environmental, social, and governance (ESG) principles deeply within its business model. “In 2024, Caledonia took several steps to future-proof our business and embed ESG deeper into our strategy,” said CEO Mark Learmonth. “We believe in driving real sustainability progress where it matters most: for our business, our operations, and the communities that depend on us.”
At the heart of this strategy is the Supplier and Services Development Program (SSDP), which actively identifies, nurtures, and supports local enterprises to build resilient, sustainable supply chains.
The program’s impact is clearly visible in Gwanda and surrounding areas, where homegrown companies have grown from small operations into significant contributors to the mining economy.
Caledonia’s approach to local procurement is more than just a box-ticking exercise; it is a foundational pillar of its SSDP, which focuses on building robust, inclusive supply chains that reflect the broader goals of economic empowerment and community development.
To illustrate the impact of the programs, here are some of the standout local enterprises whose growth and success exemplify the transformative power of investing in homegrown businesses:
Godcath Investment: Building a Future in Gwanda
One of the most inspiring stories is that of Godcath Investment, a civil engineering firm founded by five individuals in 2017. Starting with a single contract at Blanket Mine, the company has since evolved into a thriving business employing 27 people and offering a suite of services from plumbing and electrical work to construction and painting. Their contributions to infrastructure projects, such as school buildings and public sanitation facilities, have had a direct and visible impact on community development. More importantly, the economic benefits have trickled down to employees’ families, enabling them to afford school fees and improve their living standards.
RJK: Expanding Opportunities in Construction
Another SSDP success story is RJK, which began operations in 2010 with a focus on water treatment and housing infrastructure. Today, it boasts a full-time staff of over 70, growing to 100 during peak project periods. What sets RJK apart is its commitment to skills transfer: specialists from Bulawayo provide on-the-job training to local workers, building long-term human capital within the Gwanda region. The company also stands out for its gender inclusivity, with women holding 40% of senior leadership positions—an impressive feat in a sector where female representation remains limited. Blanket Mine has been instrumental in helping RJK professionalise its operations, including upgrading safety protocols and enhancing project management capacity.
AFROAT: From Small Supplier to Industry Player
AFROAT, another local supplier, illustrates how entrepreneurial vision, combined with consistent support, can yield remarkable results. Initially operating with just two people in a rented space, AFROAT began by supplying underground support timber before expanding into the importation of mine spares, transport services, and now stamp milling and ore processing. The company currently employs nearly 60 people across its divisions. Through its close collaboration with Blanket Mine, AFROAT has embraced SHE (Safety, Health, and Environment) practices, embedding a culture of risk awareness and operational discipline among its workforce. Moreover, its community impact goes beyond commerce: AFROAT supports the Liseko Children’s Foundation, has donated school supplies, and installed a solar-powered JoJo tank at a local school.
Caledonia’s efforts to foster local businesses are not just paying off economically; they are creating a resilient, empowered ecosystem of enterprises capable of thriving independently. This local capacity not only improves supply chain reliability but also anchors the mine more firmly in the community’s socioeconomic fabric.
The shift to local sourcing mitigates the risks associated with foreign exchange volatility, import delays, and geopolitical uncertainties, positioning Blanket Mine to operate more efficiently and sustainably.
With 40% of inputs now procured locally, Caledonia is setting a benchmark for other mining companies operating in Africa. As the global race for critical minerals intensifies and pressure mounts to localise the benefits of resource extraction, Caledonia’s model demonstrates how mining can serve as a catalyst for broader development, creating not just profits but prosperity.
In a region where policymakers are increasingly calling for beneficiation, inclusive value chains, and local empowerment, Caledonia’s evolving procurement strategy is a case study in how mining operations can anchor economic resilience.
Its partnerships with firms like Godcath, RJK, and AFROAT are living proof that local enterprise development is not only possible but vital to the future of African mining.
Despite the mining sector’s strong focus on sourcing locally, several pressing challenges need immediate attention. One major issue is the limited manufacturing capacity, which is largely due to outdated equipment and inadequate efforts to modernize facilities.
This problem is worsened by frequent power interruptions and shortages of essential raw materials and consumables, which restrict production capabilities.
Quality concerns also present significant obstacles, as substandard products can negatively impact safety standards, operational efficiency, and overall costs. On top of that, pricing remains a major challenge, with local suppliers often charging rates tied to the US dollar alternative market, leading to inflated markups that are unsustainable for mining operations.
Furthermore, extended lead times compound these difficulties. Many local suppliers primarily act as middlemen for foreign manufacturers, which limits their control over product availability and delivery schedules.
Unfavourable trade and payment conditions add to the strain, with early payment requirements putting pressure on cash flow management. Resistance to accepting the local currency, the Zimbabwean dollar (ZWL), alongside ongoing forex shortages, further complicates transactions.
These combined issues underscore the urgent need for enhancements within the local supply chain to support the mining industry better.
Additionally, improving logistics, such as simplifying import processes, can significantly strengthen supplier operations. Building strong, collaborative relationships across the entire value chain with key stakeholders, including banks, government bodies, and local communities, is essential for long-term sustainable growth.