Ncube Projects 5.6% Growth for Mining Sector on the Back of Improved Commodity Prices
Zimbabwe‘s 2025 National Budget, presented by Finance and Investment Promotion Minister Mthuli Ncube, projects a 5.6% growth in the mining sector, driven by an anticipated surge in global commodity prices.
By Ryan Chigoche
This marks a sharp recovery from 2024, where subdued platinum group metal (PGM) prices had limited growth to a modest 2.3%. The anticipated rebound in prices for key minerals such as gold, chrome, and diamonds is expected to significantly boost production and enhance sector performance.
Minister Ncube noted that the mining sector has faced challenges in recent years, primarily due to volatile mineral prices. However, with prices for gold, chrome, and diamonds forecast to rise, the sector is poised for a strong recovery in 2025.
The government’s ongoing efforts to stabilize the energy sector, including the construction of new power plants, are also expected to support growth by ensuring a reliable power supply for mining operations.
“The expected rise in global mineral prices, particularly for gold, along with improvements in power supply, will drive the growth of our mining sector,” Ncube said.
This positive outlook extends beyond 2025, with projected growth rates of 5.5% in 2026 and 5% in 2027 as commodity prices remain favorable and energy challenges ease.
Contribution to Economic Recovery
The mining sector is set to play a pivotal role in Zimbabwe’s broader economic recovery. By 2027, it is projected to contribute 13.3% to the national GDP, underscoring its importance in driving long-term development.
To support this growth, the government has prioritized mineral value addition and beneficiation.
Key initiatives announced in the budget include:
- Mines to Energy Park in Mapinga: This facility will process lithium and graphite.
- Gold Centers: Establishment of new centers to enhance gold deliveries to the Fidelity Gold Refinery.
These initiatives aim to boost production, create jobs, and retain more value from Zimbabwe’s mineral resources within the country.
Focus on Beneficiation
Zimbabwe has long advocated for its PGM miners to refine platinum locally instead of exporting raw concentrates. The government argues that beneficiation will create jobs, stimulate the local economy, and maximize the value of the country’s platinum reserves.
A Promising Future
With rising mineral prices, strategic investments in energy, and a focus on value addition, Zimbabwe’s mining sector is on track for a promising 2025. These developments lay the groundwork for a strong and sustainable recovery in the years ahead.