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CAPE TOWN — In an effort to demystify one of the most debated aspects of Zimbabwe’s investment policy, the government has provided fresh clarity on its indigenisation framework, assuring miners it prioritises partnership over prescriptive ownership, Mining Zimbabwe can report.
By Rudairo Mapuranga
The Permanent Secretary for the Ministry of Mines and Mining Development, Mr Pfungwa Kunaka, delivering a speech on behalf of the Minister, Hon. Dr Polite Kambamura, at the Zimbabwe Mining Breakfast in Cape Town, directly addressed investor concerns by redefining the policy’s core objective.
“It is vital to remember that the mining industry is so critical that nations in Africa, Latin America, Europe, and Asia have their own versions of indigenisation — what differs is just the terminology used and the stipulated thresholds,” Kunaka stated, reading the Minister’s speech.
He moved to dispel long-held apprehensions by explicitly separating the policy from mandatory shareholding demands.
“In Zimbabwe, indigenisation is not synonymous with compulsory equity thresholds,” he declared.
The Minister’s speech outlined a broader, more flexible vision for economic empowerment, aligning it with global norms of local content and development.
“Our empowerment framework is broad-based and outcome-focused,” he explained. “It encompasses local procurement that supports Zimbabwean suppliers and enterprises, beneficiation and value addition that create jobs and industrial linkages, skills development and employment that build local technical and managerial capacity, and community development through investment in host communities.”
On the specific issue of equity, which has been a primary source of investor uncertainty, the Minister offered a clear, conciliatory position.
“Equity participation is one component of this framework, but it is applied flexibly and through mutual agreement,” he said. “The emphasis is on genuine partnership rather than rigid formulas.”
This clarification signifies the substantial evolution of Zimbabwe’s empowerment policy. The original Indigenisation and Economic Empowerment Act, enacted in 2008, once mandated that all businesses, including mines, be 51% owned by indigenous Zimbabweans. This prescriptive approach was a significant deterrent to foreign investment.
The policy was significantly amended, most notably through the 2022 Finance Act, which repealed the 51/49% indigenous ownership requirement for most sectors of the economy. For the mining sector, the law now reserves specific minerals for empowerment partners: diamonds are exclusively mined through joint ventures with the state, while platinum projects require a 15% non-contributory shareholding for designated entities. Crucially, for all other minerals, including gold, lithium, and copper, foreign investors are permitted 100% ownership, a point the Minister reaffirmed in his address.
The move away from rigid equity mandates aligns with a global shift where a miner’s “social licence to operate” is increasingly built on Environmental, Social, and Governance (ESG) performance and responsible sourcing, not just ownership structures. The Minister’s redefinition of indigenisation to focus on “community development,” “skills development,” and “local procurement” directly mirrors the “S” and “G” in ESG frameworks.
This modern approach positions Zimbabwe to attract capital from international funds mandating strong ESG compliance. It signals that the government seeks investors committed to responsible mining — creating shared value, upholding environmental stewardship, and investing in host communities — as the foundation for long-term partnership and national benefit.
