ZIMBABWE’S mining industry requires approximately US$10 billion in capital investment over the next five years to sustain operations and ramp up output, outgoing Chamber of Mines of Zimbabwe President Mr John Musekiwa has said.
By Rudairo Mapuranga
Delivering his final address at the Chamber’s 26th Annual Mining Conference and Exhibition in Victoria Falls, Mr Musekiwa painted a picture of a sector at a pivotal moment—recording robust growth and record earnings, but facing significant funding constraints that threaten to stall momentum.
The mining sector recovered strongly in 2025, recording growth of around 7 percent compared to 2.3 percent in 2024, Mr Musekiwa reported.
On the back of strong output growth in gold, coal, and lithium, the sector generated a record US$8.5 billion in export earnings in 2025, up from US$5.9 billion in 2024, driven by strong output performance and favourable prices, particularly for gold and PGMs.
The sector accounted for 81 percent of national exports in 2025, paid about 20 percent of earnings to the government through various taxes and levies, and contributed 10 percent to the country’s GDP, employing around 60,000 people in the formal mining sector.
Mr Musekiwa noted that the sector’s multiplier effect is estimated at around 3, “implying that for every dollar generated by the sector, three more dollars are created in other sectors of the economy.”
However, the outgoing president struck a cautionary note on the sector’s ability to sustain its growth trajectory.
“The funding gap to optimise operations and meet output targets remains huge. Approximately US$10 billion is required by the industry in the next five years for sustenance and ramping up output,” he said.
“A significant number of mining companies are struggling to raise offshore funding, thus relying on internally generated resources or retained earnings.”
Mr Musekiwa also highlighted several challenges weighing down the sector’s performance, including high royalties and levies, high capital costs, and uncompetitive electricity tariffs.
“While we appreciate ZESA’s commitment to prioritise mining companies for available power, the power supply situation for the mining industry remains a dominant issue. Some mining companies continue to experience power outages,” he said.
“To this end, some mining houses have been supplementing their power requirements through alternative solutions, including running expensive diesel-powered generators.”
The outgoing president raised concerns about foreign currency shortages affecting expansion projects and beneficiation facilities.
“Our mining houses, specifically those undertaking expansion projects and constructing beneficiation facilities, are reporting that the available foreign currency is inadequate to meet their requirements,” he said.
“It is our humble plea that the government allows mining companies to participate on the Willing Buyer, Willing Seller platform, specifically for legitimate forex requests to supplement their forex requirements.”
He also noted delays in the payment of the surrender portion of export proceeds, which have “adversely affected operating cash flows as well as delayed the execution of capital projects.”
Despite the challenges, the outlook for the mining sector remains bright, with the sector projected to grow by a further 10 percent in 2026 as output for all minerals is expected to expand.
Gold output is expected to increase from 50.6 tonnes in 2025 to around 55 tonnes in 2026, generating corresponding exports of around US$5 billion. PGM output is projected to increase by an average of 5 percent in 2026, with exports reaching US$2 billion. Lithium output is expected to increase to 3 million tonnes in 2026, from around 2.5 million tonnes in 2025, with exports anticipated to reach US$700 million.
“I would like to take this opportunity to thank the executive committee, management, members, and all stakeholders for their support during my tenure,” he said.
“It is without doubt that the Chamber of Mines will remain in safe hands as my able successor, Mr Fungai Makoni, steers the ship as the industry scales to new heights.”
