By Ryan Chigoche
An impressive 99% of mining executives commend the government’s intention to replace the existing Indigenization Act with the proposed Economic Empowerment Bill. This change reflects a significant shift in the industry, with executives advocating for a framework that prioritizes local participation and sustainable economic benefits for communities.
The survey shows that industry leaders are actively engaging with the government, having received the gazetted Bill and submitted proposals through the Chamber of Mines. This proactive involvement underscores a collective commitment to align with government initiatives focused on economic empowerment, moving away from the equity-based model that has previously dominated the sector.
The proposed Economic Empowerment Bill offers several advantages over the Indigenization Act. By emphasizing local content, the new framework encourages the participation of local suppliers and businesses, creating valuable economic opportunities within communities. Unlike the equity model, which often ties dividends to company performance and results in limited benefits during downturns, the new framework aims to provide immediate and sustainable advantages for local stakeholders. Additionally, many mining companies are already implementing initiatives to support local enterprise development, demonstrating a strong commitment to empowerment and collaboration.
To ensure the successful implementation of the Economic Empowerment Bill, the report recommends that the government clarify its policy on exempting mining companies from the equity model, providing clear guidelines to encourage further investment. Furthermore, expediting the finalization of the empowerment framework is crucial for attracting both domestic and foreign investments, ultimately stimulating growth in the mining sector.
However, there are concerns regarding the broader legislative landscape. Mining executives are generally pessimistic about the prospects for an improved policy environment in 2025. A significant 80% of respondents expect the legislative policy environment to either worsen or remain unpredictable, similar to conditions in 2024. Key concerns include frequent policy reversals, an unstable macroeconomic environment, and uncertainty surrounding the finalization of amendments to the Mines and Minerals Act, the Economic Empowerment Bill, and the Local Content Implementation Framework.
Executives have recommended that the government expedite the finalization of amendments to these key legislative frameworks. As the mining industry navigates these challenges, the transition from the Indigenization Act to the Economic Empowerment Bill remains a critical opportunity for economic transformation, with the potential to foster a more equitable and sustainable environment for all stakeholders involved in Zimbabwe’s mining sector.