Zimbabwe Courts Canadian Investors to Unlock Mineral Wealth

Mthuli Ncube

The Zimbabwe government is actively courting Canadian investors to tap into the country’s rich mineral resources. The Zimbabwe Investment Development Agency (ZIDA) and the government are working to conclude talks regarding Exclusive Prospecting Orders (EPOs) and the export of mineral claims to attract Canadian investors.

By Ryan Chigoche

This was revealed by Minister of Finance and Investment Promotion, Mthuli Ncube, at the recent 3rd Canada-Africa Business Conference, held for the first time in Harare yesterday.

Earlier this year, the government of Zimbabwe issued a directive to suspend the issuance of new EPOs and cancelled all existing ones, in an effort to curb speculation and create a level playing field for investors.

EPOs grant investors the right to prospect for new mineral deposits in specific geographic locations to promote the discovery of new deposits, leading to the opening of new mines and the expansion of existing operations in Zimbabwe. Approximately 90% of Zimbabwe’s vast mineable mineral lands are under EPOs issued in 2021, which were valid for three years.

Addressing the Canada-Africa Chamber of Business delegates at the conference, Minister Ncube said they are advancing discussions on EPOs with ZIDA, who are lobbying to attract Canadian investors into the country.

“The Agency is actively lobbying the government to finalize processes such as the outstanding Exclusive Prospecting Orders (EPOs), the export of mining samples, and ensuring Zimbabwe’s mining claims comply with the Canadian NI43-101 framework, laying a solid foundation for advancing Canadian investment in Zimbabwe,” Ncube said.

“Opportunities exist in the areas of exploration, mining, beneficiation, value addition, smelting, and refining of minerals such as platinum, chrome, gold, and lithium. The transition to green economies has increased demand for lithium-ion batteries used in electric vehicles and equipment. This resource and other green minerals are found in Zimbabwe,” he added.

The conference and other key initiatives followed ZIDA’s engagements with Canadian stakeholders on the sidelines of the Prospectors and Developers Association of Canada (PDAC) conference in March 2024.

Zimbabwe’s mining sector has a diversified mineral resource base of over 55 exploitable minerals, which should underpin growth and development moving forward.

Canada’s Ambassador to Zimbabwe, Adler Aristilde, expressed Canada’s interest in increasing trade with Zimbabwe, seeing the potential for growth between the two countries.

“Last year, Canada’s two-way trade with the continent was $16.3 billion, of which sub-Saharan Africa accounted for US$10.5 billion. Our main exports were cereals, machinery, equipment, precious stones, metals, and fertilizers. Trade with Zimbabwe is more limited, but we see growth potential and are working to tap into it,” Aristilde said.

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The conference aimed to enhance cooperation and investment between Africa and Canada, bringing together representatives from Canadian companies and local stakeholders to discuss investment opportunities and foster dialogue.

The engagement highlighted various sectors with attractive investment potential, including infrastructure development, mining, tourism, renewable energy, agriculture, information and communication technology (ICT), and manufacturing.

In recent times, the government has been actively implementing key reforms to stimulate private investment, focusing on achieving macroeconomic stability, improving the business environment, and enhancing the competitiveness of domestic industries.

In the past few years, Zimbabwe’s economy has demonstrated positive growth, with real GDP growth rates of 8.5% in 2021, 6.5% in 2022, and an estimated 5.5% in 2023, with projected growth of 2% in 2024, partly impacted by severe drought conditions.

To improve the investment climate, Ncube added that the government remains committed to prudent monetary and fiscal policies, enacting necessary reforms to stabilize the business environment and address price and exchange rate issues.

To enhance the investment landscape, the government established the Zimbabwe Investment Development Agency (ZIDA) to promote and facilitate investment in Zimbabwe. The agency’s One-Stop Investment Services Centre (OSISC) offers comprehensive support services, ranging from investment analysis and company registration to tax clearance, licensing, utility connections, investment promotion, public relations, and aftercare services.

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