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Zimbabwe’s mining sector, long burdened by rising costs and regulatory red tape, may finally be seeing signs of relief.
By Ryan Chigoche
While the 2025 Mid-Term Budget and Economic Review Statement did not explicitly focus on mining, Finance and Investment Promotion Minister Mthuli Ncube announced a series of reforms that could ease pressure on the industry, particularly through reduced statutory charges and simplified compliance procedures.
Presenting the review, Minister Ncube revealed that the government had “with immediate effect” initiated the process of reviewing statutory fees and charges, alongside efforts to streamline the number of bureaucratic steps required for regulatory compliance.
“During the second half of the year, the government will be seized with the implementation of ease of doing business reforms, targeting the reduction of fees and charges, as well as regulatory requirements and the number of steps,” he said. “This is imperative to significantly reduce the operational costs of the industry to enable it to compete both domestically and internationally.”
These proposed changes may be cautiously welcomed by mining executives, who have for years raised concerns over a fragmented permitting system, overlapping institutional mandates, and excessive statutory costs all of which hamper project development and investor confidence.
“If these reforms are applied to institutions like the Ministry of Mines, EMA, and other regulatory bodies, we could see meaningful operational improvements,” noted a mining executive familiar with compliance challenges in the sector.
In addition to regulatory streamlining, Minister Ncube also hinted at broader fiscal reforms. He said the government is reviewing the existing tax framework to eliminate distortions and enhance the country’s investment competitiveness.
While not mentioned directly in the statement, the mining sector remains heavily impacted by fiscal policy shifts.
Operators have repeatedly highlighted the unpredictability of royalties, the burden of multiple taxes, and the lack of a consistent fiscal regime as critical investment deterrents.
These mid-term announcements follow the introduction of significant fiscal measures in the 2025 National Budget, which came into force in January. That budget introduced new tax provisions and royalty hikes aimed at boosting revenue, improving compliance, and encouraging beneficiation.
However, these changes have tightened the fiscal space for mining firms, who now face special capital gains taxes, beneficiation-linked penalties, and heightened compliance obligations, further stretching operational budgets.
The delayed passage of the Mines and Minerals Amendment Bill has also added uncertainty, with many in the industry viewing it as a critical reform to modernise the legal framework governing mining.
In this context, Ncube’s mid-term reforms—especially the move to review fees and ease compliance—raise an important question:
Will they be enough to counterbalance the financial and regulatory weight imposed earlier this year?
While the proposals offer a glimmer of hope, the mining industry remains cautious.
Much will depend on the speed and effectiveness of implementation and whether the reforms are fine-tuned to meet the practical needs of one of Zimbabwe’s most critical economic sectors.
As it stands, the Mid-Term Budget signals a willingness to engage with some of the sector’s long-standing structural concerns. But the road ahead hinges on execution and consistent policy direction.
