“Mine to Market: Critical Minerals”
Zimbabwe must urgently recalculate its investment and policy frameworks to avoid falling into a monopoly trap within its burgeoning critical minerals sector, a development consultant has warned, Mining Zimbabwe can report.
By Rudairo Mapuranga
Mukasiri Sibanda sounded the caution during the launch of the Zimbabwe Environmental Law Organisation (ZELO)’s “Mine to Market: Critical Minerals” situational report. While acknowledging the government’s push for value addition, Sibanda highlighted a critical pitfall that could undermine the country’s strategic advantages.
“We are now in a position whereby the young Asians have been introduced, which is very good. But if we do not recalculate our policies, we also trap ourselves in monopolies,” Sibanda stated.
His comments point to a growing concern over the dominant role of a single investor nation—China—in Zimbabwe’s lithium and other critical mineral sectors. This concentration of ownership, he suggested, risks stifling competition and could ultimately be detrimental to the nation’s long-term economic interests.
Sibanda framed the issue as a matter of global strategic importance, noting, “We are one of the countries that controls the entire climate change.” This statement underscores Zimbabwe’s significant endowment with minerals like lithium, which are essential for the global clean energy transition. However, he implied that this abundance of resources is not being maximised if it leads to a market controlled by a single player.
Sibanda posed a critical question to policymakers, asking whether new investors from other regions would find a level playing field. “If other new investors come in here, would they also get free space to be able to improve their investment before competing with those that have been in the sector?” he asked.
This, he argued, calls for a deliberate strategy to diversify the country’s investment portfolio beyond its current primary partners. Sibanda’s remarks directly supported recommendations in the ZELO report for a more diversified investment approach, suggesting a need to actively attract capital from Europe, the United States, India, and Canada.
To facilitate this diversification, Sibanda pointed to the need for policy reforms, specifically highlighting the importance of reviewing bilateral investment treaties and double taxation agreements. Such reforms, he argued, are essential to creating a more attractive and competitive environment for a broader range of international investors.
The warning serves as a strategic counterpoint to the government’s value-addition drive, suggesting that who adds the value is just as important as the act itself. Without a conscious effort to cultivate a competitive and multi-polar investment landscape, Zimbabwe risks swapping the export of raw materials for a market controlled by a select few, ultimately limiting the economic benefits from its critical mineral wealth.
