Opportunities for Improved Mineral Revenue Transparency in Zimbabwe’s Mining Sector
Zimbabwe’s mining sector continues to grapple with the challenges of transparency in revenue collection and distribution. While mineral extraction significantly contributes to national income, the absence of clear and accountable financial systems has impeded the sector’s ability to reach its full potential, Mining Zimbabwe reports.
By Rudairo Mapuranga
Speaking during a parliamentary engagement program hosted by Green Governance Zimbabwe Trust on Friday, Obert Bore of the Zimbabwe Environmental Law Association (ZELA) underscored the need for stronger legislative measures to enhance mineral revenue transparency in the mining sector.
Bore explained that the current Mines and Minerals Act lacks explicit provisions mandating mining companies to disclose financial transactions, including taxes and royalties paid to the government. While some companies—particularly those listed on international stock exchanges—voluntarily disclose this information, many others, especially Chinese-owned entities, do not. This lack of transparency undermines accountability within the sector.
“Illicit financial flows from mining are well-documented, yet there are no penalties in place to address them,” Bore stated.
He emphasized the importance of strengthening collaboration between institutions like the Zimbabwe Revenue Authority (ZIMRA) and the Environmental Management Agency (EMA) to address these issues.
Bore also highlighted the opportunities presented by the ongoing drafting of the Mines and Minerals Amendment Bill. He noted that the bill provides a critical opportunity to introduce penalties for illicit financial flows, enhance beneficial ownership disclosures, and promote contract transparency, as mandated by Section 315 of Zimbabwe’s Constitution. He also advocated for Zimbabwe to join initiatives like the Extractive Industries Transparency Initiative (EITI), which would align the country with global standards for governance and accountability in the mining sector.
“Stronger regulatory frameworks and independent oversight are essential for the future of Zimbabwe’s mining sector,” Bore concluded, urging Parliament to prioritize these reforms.