Govt offers tax breaks to companies that invest in local procurement, beneficiation
The government of Zimbabwe has offered to give tax breaks and other incentives to mining companies that invest in local beneficiation and value addition at the same time while prioritizing procurement of local suppliers.
Speaking at the official opening of the Mining, Engineering and Transport Expo (MineEntra) on Thursday President Mnangagwa said mining companies should procure a certain percentage of their goods and services from local suppliers in line with the Buy Zimbabwe Campaign.
The President also said that mining companies should invest in infrastructure that will support the development of downstream industries like roads, railways and power plants. He said the government will offer tax breaks and incentives to companies that invest in local beneficiation.
“I call upon mining companies to procure a certain percentage of their goods and services from local suppliers in line with the Buy Zimbabwe Campaign. This will help to grow the domestic economy and create jobs Mining companies must invest in infrastructure that will support the development of downstream industries. This includes things like roads, railways, and power plants. As Government, we will provide tax breaks and other incentives to companies that invest in local beneficiation and value addition. This will make it more attractive for companies to process their minerals in Zimbabwe rather than exporting them raw,” President Mnangagwa said.
The President also called on mining companies to operate sustainably and responsibly to minimize the negative impact of mining on the environment and local communities.
He said mining companies should also adopt new technologies and be innovative to remain competitive and sustainable.
He said mining companies should collaborate with universities and other research institutions to develop and adopt new technologies.
“It is also important to ensure that the mining sector is operated in a sustainable and environmentally responsible manner. This means minimizing the impact of mining on the environment and local communities. I believe that by taking these steps, Zimbabwe can maximize the benefits of its mining sector and achieve its economic development goals. Nyika inovakwa nevene vayo, and the mining sector must ensure it leaves no one and no place behind. This means ensuring that the benefits of mining are shared widely and that local communities benefit from the extraction of their resources. The adoption of innovation in the mining sector is essential for the industry to remain competitive and sustainable. New technologies can help to improve efficiency, reduce costs, and minimize the environmental impact of mining. Mining companies must also create a culture of innovation within their organizations. I call upon mining companies to collaborate with universities and other research institutions to develop and adopt new technologies,” HE Mnangagwa said.
Speaking at the same event the Minister of Mines and Mining Development Hon Zhemu Soda said there is a need for the mining industry to rethink its strategies to allow the country to benefit from mining.
“The theme of the 26th Edition of Mine Entra, “Accelerating economic transformation through mineral beneficiation” rightfully points out that there is a need for the mining industry to refocus its plans and work hard to ensure an accelerated and sustainable expansion of the sector, which will finally allow the nation to fully profit from its mineral resources, as is correctly pointed out,” Hon Soda said.
The Minister also said that mining companies have been coming forward to partner with the government in areas of sustainability in the mining industry.
“In conclusion, ladies and gentlemen, we want to take this opportunity to applaud the private sector for working closely with the Government on the journey walked so far in the Mining Sector. As such, it is my hope that this gathering will inspire some mining companies to embrace the value addition and beneficiation agenda which can bring about socio–economic transformation in the country. Furthermore, a number of companies have entered into agreements with the Government for investments in beneficiation and value addition plants e.g., in steel manufacturing, power generation etc. It is our hope that these projects will soon come to fruition,” he said.