President Emmerson Mnangagwa has delivered a stark message to the mining industry: the days of shipping raw minerals out of Zimbabwe are numbered, and companies that fail to invest in local processing will be left behind, Mining Zimbabwe can report.
By Rudairo Mapuranga
Speaking at an annual exporters’ conference in Bulawayo on Friday, the President made it clear that his administration’s industrial policy is built on a single, non-negotiable principle: value addition must happen on Zimbabwean soil.
“In the mining sector, our policy is unequivocal,” President Mnangagwa stated. “Zimbabwe is no longer satisfied with being a supplier of raw minerals. Under my administration, the focus is on local processing, diversifying downstream industries, technology transfer, and stronger linkages across the economy.”
The President’s remarks provide high-level political backing for the government’s aggressive beneficiation drive, which has already been codified in the Finance Act through a series of taxes and deadlines targeting raw mineral exports.
For lithium and chrome producers, the President’s words translate into very concrete fiscal measures already in effect.
Under the Finance Act, exporters of unbeneficiated lithium and chrome concentrates now face a 10 percent export tax on the gross value of their shipments. For chrome, this is layered on top of a 5 percent royalty and a 1 percent MMCZ marketing fee, bringing the total tax burden to 16 percent, all payable before the mineral leaves the country.
For lithium, the pressure is even more acute. The government has set a firm deadline of January 2027, after which the export of lithium concentrates will be totally banned. From that point, all lithium produced in Zimbabwe must be processed locally into higher-value products such as lithium sulphate or lithium carbonate.
The logic is clear: companies that build processing plants in Zimbabwe will thrive; those that continue to ship raw materials will find themselves locked out of the market entirely.
President Mnangagwa urged exporters to think beyond the pit and the border post. He called on businesses to transform Zimbabwean resources into globally competitive products.
“Zimbabwe must, therefore, continue to grow by producing and processing more, toward increased export volumes,” he said. “Exports must be rooted in the country’s natural resource endowments, skills, and enterprise.”
The President emphasized that the goal is not simply to export more, but to export more value. He pointed to the need for synergies across the economy, linking mining with manufacturing, energy, and technology to create a diversified industrial base capable of entering complex global value chains.
While the policy direction is clear, implementation has raised concerns within the industry. Miners argue that the 10 percent unbeneficiated tax, particularly the requirement to pay it upfront before any revenue is received, places an impossible burden on small-scale operators.
For a small chrome miner with a 35-tonne truck, the upfront tax alone amounts to US$647.50—money that must be found before the buyer has paid, and before the mineral has even been shipped. Combined with royalty and MMCZ fees, the total upfront burden exceeds US$1,000 per truck.
The Chamber of Mines has repeatedly called for a review of the valuation methodology, arguing that taxing concentrate based on the price of finished products such as ferrochrome or lithium sulphate is premature when the processing capacity does not yet exist.
President Mnangagwa’s speech acknowledged the need for a balanced approach. While reaffirming the beneficiation agenda, he also spoke of the need to support local enterprise and build capacity. The challenge for policymakers will be to enforce the vision without suffocating the very industry they seek to transform.
Zimbabwe holds approximately 12 percent of the world’s chrome reserves and is Africa’s largest lithium producer. The mining sector contributes the bulk of the country’s foreign currency earnings and remains the most viable engine for rapid industrialisation.
President Mnangagwa’s statement signals that the era of raw mineral exports is drawing to a close. For mining companies, the message is unambiguous: invest in processing, or prepare to exit.
The next twelve months will be critical. Lithium producers are racing to complete processing plants before the 2027 ban. Chrome miners are watching to see whether the government will address the upfront tax burden that currently drives many toward smuggling.
One thing is certain: Zimbabwe’s minerals will increasingly be processed on Zimbabwean soil. The question is whether the transition will be managed in a way that builds a sustainable industry—or simply pushes more trucks across the border at night.
