Zimbabwe Must Capitalize on AI Boom as Demand for Critical Minerals Surges
According to local research firm Fincent Securities, Zimbabwe must capitalize on the explosive growth of Artificial Intelligence (AI), which is driving unprecedented demand for critical minerals as the technology’s energy-intensive infrastructure requires vast amounts of specialized materials.
By Ryan Chigoche
Data Centres, which are integral to AI development and training, and the semiconductor chips used in AI hardware, rely on a variety of metals that are becoming increasingly scarce. Experts predict that the rise of AI will trigger a 10-year “supercycle” for these minerals, further straining global supply chains that are already struggling to meet sustainability targets.
Semiconductor chips, the backbone of AI systems, are primarily made from silicon but also contain various other metals critical to their function. Copper, gold, tin, nickel, palladium, and silver are all essential components within these chips.
Copper is used for wiring and circuit boards, while gold is employed in connectors and storage devices for its exceptional conductivity and resistance to corrosion. Tin is necessary for soldering, and nickel is vital for the production of batteries and electronic alloys. Additionally, palladium and silver are commonly used in high-performance electronics due to their conductive properties.
As AI continues to evolve, data centres—which house the massive computing power required for AI processing—are under intense pressure to expand. Tech giants like Amazon are making huge investments in this infrastructure, with plans to allocate $150 billion over the next 15 years to build new data centres. These centers require large quantities of metals such as platinum, which is used in storage devices for its durability and conductive qualities.
This surge in demand for critical minerals is creating a bottleneck in supply chains already stretched by growing needs in other industries, including electric vehicles and renewable energy technologies. The race for resources has become even more urgent as nations and corporations aim to meet net-zero emission targets.
What It Means for Zimbabwe
For Zimbabwe, the growing global demand for critical minerals presents both a significant opportunity and a set of challenges. The country is rich in several minerals vital for AI technologies, such as platinum, nickel, copper, gold, and lithium. As global demand for these metals rises, Zimbabwe stands to benefit from increased mineral exports and foreign investment in its mining sector.
However, Zimbabwe faces significant challenges in capitalizing on these opportunities. The mining sector would need substantial investment to scale up production and meet international demand. Political instability, regulatory hurdles, and high operating costs could hinder efforts to attract foreign investment into the sector.
Beyond raw extraction, experts believe Zimbabwe could benefit from further industrialization, moving up the value chain by processing and refining its minerals locally. This could lead to job creation, higher-value exports, and a more diversified economy. By developing industries such as battery production or electronic component manufacturing, Zimbabwe could position itself as a key player in the tech sector, creating sustainable growth that goes beyond simply exporting raw minerals.
Zimbabwe is endowed with over 60 known mineable resources, dominated by two key geological features—the Great Dyke and ancient greenstone belts. The Great Dyke holds the world’s second-largest deposits of platinum group metals (PGMs), second only to South Africa’s Bushveld Complex.