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Zimbabwe’s mining industry is expected to grow by 5.9% in 2026, supported by firm global gold prices and strong performance in key mineral sub-sectors such as iron and steel, coal, and chrome, Mining Zimbabwe can report.
By Ryan Chigoche
According to the 2026 Budget Strategy Paper presented to Parliament by Finance and Investment Promotion Minister Mthuli Ncube, the sector’s resilience is set to continue despite subdued international commodity prices. The projected growth will largely be driven by sustained demand for gold as a safe-haven asset, coupled with improved output across major mineral industries. These developments are expected to boost overall production and further strengthen the sector’s contribution to Zimbabwe’s economic growth.
The outlook for 2026 builds on strong mining sector performance in recent years. In 2024, Zimbabwe’s mining industry exceeded export targets, generating approximately US$5.34 billion, contributing nearly 12% to GDP, and accounting for over 70% of total export earnings.
Gold production reached a record 36.48 tonnes, with artisanal and small-scale miners supplying 65% of deliveries. Platinum group metals (PGMs), chrome, nickel, and lithium also played significant roles, although softer global prices for PGMs and lithium weighed on revenues. Despite these price challenges, overall mineral output grew by 2.3% in 2024.
Looking ahead through 2025, the sector is forecast to grow by 7%, supported by rising mineral exports, increased capacity utilization, and improved employment levels. Official projections expect mineral exports to rise from US$5.5 billion in 2024 to US$6 billion in 2025, while capacity utilization is projected to increase to 90%, up from 84% the previous year.
Building on this positive trajectory, the 2026 Budget Strategy Paper underscores that the anticipated sustained growth of the mining sector will be supported by strategic initiatives focused on local beneficiation and value addition.
By upgrading processing and refining capacities to produce more semi-finished and finished mineral products, the government aims to foster industrial hubs and develop value chains that maximize domestic economic benefits while reducing reliance on raw mineral exports.
“Priority will also be on promoting local value addition and beneficiation through upgrading local processing and refining capacity of minerals into semi-finished and finished products. These policies will support the development of industrial hubs and value chains, maximizing domestic economic benefits and reducing reliance on raw mineral exports,” the Finance Ministry said.
However, despite the promising outlook, the mining sector continues to face significant legislative and regulatory uncertainties. The long-awaited amendments to the Mines and Minerals Act have not yet been fully enacted, creating gaps related to claim security, environmental compliance, and benefit-sharing with local communities.
These unresolved issues, coupled with inconsistent policies on value addition and frequent changes to royalty and tax regimes, have slowed project approvals and made investors cautious, potentially hampering fresh capital inflows and the sector’s ability to reach its full potential.
In response, the government has committed to strengthening the sector’s regulatory framework. The 2026 Budget Strategy Paper highlights intentions to create a clear, consistent, and adaptive legal environment that reduces uncertainty and attracts both domestic and foreign investment. It further commits to streamlining approval processes and aligning regulations across jurisdictions to support responsible mining practices and foster intra-regional collaboration.
“Government will continue to enhance legislative reforms in order to ensure a clear, consistent, and adaptive regulatory framework for the mining sector. This will reduce uncertainty, attract both domestic and foreign investment, and facilitate intra-regional collaboration. Approval processes will be streamlined and regulations aligned across jurisdictions to support responsible mining practices and enable cross-border projects,”
As Zimbabwe’s mining sector navigates challenges and capitalizes on growth opportunities, the government’s focus on regulatory reforms and value addition will be crucial in sustaining momentum.
With supportive policies and a clearer legal framework, the industry is well-positioned to attract investment, boost exports, and drive economic development in the years ahead.
