Zimbabwe’s mining sector, rich in platinum, gold, lithium, and diamonds, is a cornerstone of the country’s economy. Yet, despite policies designed to promote local industry, the sector remains heavily dependent on South African imports, highlighting a one-sided trade relationship that limits domestic industrial growth.
By Ryan Chigoche
As of 2023, Zimbabwe’s mining sector continues to rely heavily on South Africa. Approximately US$2.1 billion of the US$5.4 billion mining sector revenue is spent on imported machinery, equipment, and services required for mining operations, mainly from South Africa, according to the Zimbabwe Embassy.
This is further supported by an Afreximbank report, which highlighted that 80% of Zimbabwe’s intra-African mining-related imports, totalling US$4.7 billion, originate from South Africa. This includes critical mining goods such as machinery and mechanical appliances (12.5%), mineral fuels and oils (11.6%), and fertilisers used in certain mining processes (5.65%).
However, the worrying thing is that local manufacturing contributes only about 15%, highlighting a significant gap between the sector’s capacity and reliance on South African imports.
This persistent dependence underscores the urgent need to prioritise local procurement, strengthen domestic mining equipment manufacturing, and reduce reliance on South African suppliers, ensuring more value from Zimbabwe’s minerals remains in the country.
South African Suppliers and Local Engagement
Despite earning substantial revenue from Zimbabwe, many South African suppliers provide minimal support to local enterprises, whether through partnerships, joint ventures, or skills transfer. This transactional approach allows foreign companies to profit while Zimbabwean businesses and communities see limited benefit.
In contrast, South Africa enforces a strong local content strategy, requiring at least 70% of mining goods and 80% of services to be sourced locally. The policy also prioritises historically disadvantaged, women-owned, and youth-owned businesses, fostering domestic industries, reducing trade deficits, and growing the local tax base. Zimbabwe could emulate this model to ensure its minerals benefit the country first.
Zimbabwe Local Content Strategy: Progress and Gaps
Zimbabwe approved its Local Content Strategy (LCS) in 2019 with ambitious targets: increasing local content levels from 25% to 80%, boosting manufacturing capacity utilisation from 45% to 75%, and growing manufactured exports by 5% annually by 2023.
But as of 2025, these targets have not been fully achieved. Only 15% of the mining sector’s requirements are currently met by local manufacturers, with over US$2.1 billion of sector revenues spent on imports.
According to the Chamber of Mines Zimbabwe (CoMZ), the mining sector is running at 81–84% capacity utilisation and is projected to hit 90% in 2025, evidence of strong growth.
Meanwhile, the Confederation of Zimbabwe Industries (CZI) reports that manufacturing capacity utilisation sits at just 56.2%, far below the mining industry’s pace.
This widening gap highlights the urgent need to capacitate local industry through financing, retooling, and preferential procurement so that it can supply a growing mining sector and keep more value within Zimbabwe.
Proof That Zimbabwe Can Deliver
A clear example of the capability of Zimbabwe’s local mining industry comes from Mimosa Mining Company’s US$75 million Tailings Storage Facility (TSF-4) project.
According to Mimosa’s General Manager, all contractors involved in the project were local, with the construction managed entirely by Zimbabwean firms. While the design was done by a South African engineering firm (SRK), the project costs largely reflect local expenditures, with only a few exceptions for imported materials such as pipes.
This demonstrates that, with proper planning and procurement support, Zimbabwean contractors and service providers can successfully handle large-scale mining projects.
It also underscores why full implementation of the Local Content Strategy, together with financial and technical support for local suppliers, is essential to replicate such successes across the industry.
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.
Building a Stronger Local Industry
To fully leverage Zimbabwe’s mining potential, it is essential to prioritise local enterprises through a combination of strategic initiatives.
First, preferential local procurement should be enforced, ensuring that government contracts and industry tenders favour Zimbabwean suppliers wherever possible. Second, targeted capacity building and funding is critical to equip local firms with the technical expertise, machinery, and financial resources needed to meet the standards of the mining industry.
Finally, fostering industrial partnerships with foreign suppliers can facilitate technology transfer, skills development, and collaboration, enabling domestic businesses to scale up and consistently deliver high-quality products and services. By implementing these measures, Zimbabwe can retain more value within the country, create jobs, and strengthen its industrial base.
Zimbabwe has the strategy, the capacity, and proven examples like the Mimosa TSF-4 project to deliver large-scale mining projects locally. Yet, implementation lags behind, leaving the sector heavily dependent on South African imports. Accelerating the Local Content Strategy and prioritising domestic manufacturing are crucial to making mining a true engine of industrialisation, employment, and sustainable economic growth.
