ZIMBABWE has a US$30 billion opportunity staring it in the face – but only if the country treats mining procurement as an industrial policy rather than simply a compliance exercise, industry leaders say.
By Rudairo Mapuranga
The numbers are stark. Zimbabwe’s mining industry generates approximately US$8.4 billion in revenue annually, spending about US$3.4 billion on suppliers, consumables, power, transport, machinery, and chemicals. Yet of that US$3.4 billion, only US$410 million – barely 12% – is spent on locally manufactured products. The rest flows to foreign economies, creating jobs and building industries elsewhere.
“We have the geology, we have the human capital. What we now need is to connect demand to local capability,” Industry and Commerce Minister Nqobizitha Mangaliso Ndhlovu told delegates at the Mine Entra Suppliers Symposium. “Why would we spend so much money outside the country, exporting jobs, technologies, and opportunities in areas where we have the capacity to produce locally?”
The Government has set an ambitious target: reduce the national import bill by US$2.5 billion annually through targeted domestic manufacturing. But replacing the full US$2.5 billion quickly is unrealistic. A phased approach – targeting even 20–30% of mining-related imports over the medium term – would represent hundreds of millions of US dollars retained within the domestic economy, supporting thousands of manufacturing and engineering jobs.
The Case for a Phased Approach
Countries such as Australia, Chile, and South Africa have successfully used demand from mining companies to develop domestic manufacturers and service providers. Zimbabwe has the mineral base to pursue a similar strategy, but it must confront significant structural constraints honestly.
The Biggest Barriers
Limited manufacturing capacity remains a primary obstacle. Many products used by mines – heavy machinery, pumps, drilling equipment, explosives components, and sophisticated electrical systems – are not produced locally at the required scale or quality. As Chamber of Mines CEO Dr Isaac Kwesu noted, while 70% of mining procurement is sourced locally, the bulk of that consists of imported products distributed through local suppliers.
The high cost of production further undermines competitiveness. Zimbabwean manufacturers face expensive electricity, logistics, financing, and imported raw materials, making locally made products less competitive than imports from established industrial economies.
Access to finance is a persistent challenge, with many SMEs unable to obtain affordable long-term capital to invest in machinery, certification, or expansion needed to supply large mining companies. Loans to the mining industry currently make up just 11% of the banking sector’s loan book.
Technology and skills gaps mean that advanced mining equipment requires specialised engineering, precision manufacturing, and internationally recognised quality standards that many firms have yet to attain.
Weak linkages between mines and manufacturers mean mining companies often rely on established international suppliers because they offer proven quality, after-sales support, and reliable delivery.
Infrastructure constraints – reliable electricity, rail transport, water, and digital infrastructure – remain essential for competitive manufacturing and are still inadequate.
Policy inconsistency has also taken its toll, with industrial policies sometimes changing before businesses have recovered their investments, discouraging long-term manufacturing investment.
Phase 1: Identify What Can Realistically Be Localised (0–2 Years)
Instead of attempting to manufacture everything, government and industry should identify products already close to local production capability. This allows quick wins and builds momentum for more ambitious targets.
The low-hanging fruit is substantial. There is no reason, for example, for Zimbabwe to import personal protective equipment in this day and age when local manufacturers have the capacity to produce quality safety gear. The same applies to workwear, safety boots, hard hats, gloves, and eyewear.
Steel fabrication represents another immediate opportunity. Structural steel, gratings, handrails, and tanks can all be produced locally, supporting both mining and broader construction activity.
Conveyor components – rollers, idlers, and belting – are already being manufactured in Zimbabwe, with capacity to scale up.
Pipes and fittings, both steel and PVC, as well as flanges, can be sourced domestically. The same applies to cement products, packaging materials such as bags, drums, and containers, and chemicals with local inputs where Zimbabwe has the raw material base.
Vehicle servicing and maintenance, along with engineering services including fabrication, machining, and welding, are all areas where local capacity exists and can be expanded with targeted support.
These are not aspirational targets. They represent achievable short-term wins that can immediately begin reducing the import bill while creating local employment.
What Works: Lessons from Mimosa and Zimplats
PGM miners have shown what is possible. Zimplats has invested nearly US$460 million in local businesses through its Local Enterprise Development Programme since its launch, supporting 23 local SMEs that supply engineering services, catering, medical supplies, and protective clothing. The initiative has created more than 2,600 jobs.
Mimosa Mining Company runs a Local Enterprise Development Programme offering up to US$2 million per participant with a repayment period of up to five years, backed by a US$5 million internal revolving fund and US$15 million in bank facilities. To date, Mimosa has advanced US$6.3 million to local suppliers.
One beneficiary, Original Technology, received US$3 million to expand production capacity by 300% through an automated resin bolt manufacturing plant capable of producing 60,000 bolts per month. The company now exports to Botswana, Zambia, Mozambique, and the DRC.
The key lesson: local content succeeds when it focuses on building competitive industries, not merely substituting imports.
Phase 2: Create Supplier Development Programmes (1–3 Years)
Large mining companies should work with local SMEs by providing guaranteed purchase agreements, technical mentorship, product specifications, and assistance in obtaining ISO certification.
“Local content can remain a talk show if we do not take practical steps to make sure this is realised,” warned Minister Ndhlovu.
The Government, working with Buy Zimbabwe, has developed a digital platform to list locally manufactured products, making them visible to procurement officers and enabling mining companies to identify local suppliers who meet their requirements.
This phase requires genuine commitment from both sides. Miners must be willing to invest time in developing local suppliers, while manufacturers must be prepared to meet quality standards and delivery timelines.
Phase 3: Target Strategic Manufacturing (3–7 Years)
With the foundation laid, Government and industry can encourage investment in higher-value products, including pumps, electric motors, mine ventilation equipment, drill components, explosives accessories, and process plant components.
These sectors create higher-skilled employment and stronger industrial spillovers. Developing local capability in these areas would represent a significant step towards reducing Zimbabwe’s dependence on imports and building a genuinely competitive manufacturing sector.
Phase 4: Develop Export-Oriented Mining Manufacturing (5–10 Years)
The ultimate objective should be to supply not only Zimbabwean mines but also mines across the region. Zambia, Botswana, Namibia, Mozambique, and the DRC all have significant mining industries that currently rely heavily on imports from outside Africa.
A regional market would make local factories more competitive by providing the scale necessary to justify investment in advanced manufacturing capacity. As President Hakainde Hichilema recently announced, Zambia aims to increase local mining participation from 20% to 40%, creating a regional opportunity for Zimbabwean suppliers.
Policy Measures That Can Work
Realistic local content targets should be set by product category rather than as a single percentage across all procurement. This allows for meaningful measurement and accountability.
Tax incentives for manufacturers investing in mining supply chains would help offset the higher costs of production in Zimbabwe and encourage investment in new capacity.
An Industrial Development Fund with low-interest financing would address the critical gap in access to capital for local manufacturers. The Government has already set aside ZWG100 million for this purpose.
Supplier certification and quality assurance programmes would help local manufacturers meet international standards and build credibility with mining companies.
Joint ventures between foreign equipment manufacturers and Zimbabwean firms would facilitate technology transfer and skills development while maintaining quality standards.
Government procurement can support firms that also supply the mining industry, providing additional demand that helps manufacturers achieve economies of scale.
Industrial parks focused on mining equipment manufacturing would concentrate resources and expertise, creating clusters that attract investment and foster innovation.
What Should Not Be Done
Policies should avoid blanket import bans on products that cannot yet be produced competitively in Zimbabwe. Such bans can increase mining costs, reduce production, and discourage investment in the sector.
A gradual localisation strategy tied to measurable improvements in quality, cost, and reliability is generally more effective. The Government has signalled its commitment to this managed transition. President Mnangagwa declared that the importation of goods that can be manufactured locally is “no longer negotiable.” Vice President Chiwenga confirmed that Treasury is ready to unveil incentives to support local manufacturers.
The Bottom Line
Reducing the full US$2.5 billion import bill quickly is unlikely. However, replacing even 20–30% of imports over the medium term would represent hundreds of millions of US dollars retained within the domestic economy. That could support thousands of manufacturing and engineering jobs, stimulate technology transfer, and broaden the country’s industrial base.
The key lesson from successful mineral economies is that local content succeeds when it focuses on building competitive industries, not merely substituting imports. If Zimbabwe combines predictable policy, affordable industrial finance, strong infrastructure, and genuine partnerships between mines and manufacturers, mining procurement can become a powerful engine for industrialisation rather than simply a compliance exercise.
“We must therefore increase our ambition and respond to this global shift,” said Minister Ndhlovu. “Local content works when capability is visible, qualified, and integrated into demand.”
