Zimbabwe’s mining sector is set for a significant boost in 2025, with growth expected to reach approximately 7% amid a challenging global economic environment marked by sluggish growth, trade disruptions, and declining commodity prices, Mining Zimbabwe can report.
By Rudairo Mapuranga
Despite these global factors, Zimbabwe’s mining sector is being propelled by ongoing expansion projects and new investments across various mineral sectors.
According to the Chamber of Mines of Zimbabwe’s Commodity Outlook 2025: A Look Ahead into the Volume and Price Trends of Key Minerals – Special Focus Zimbabwe, published in January 2025, mineral revenue in Zimbabwe is projected to increase from US$5.9 billion in 2024 to US$6.2 billion in 2025. This growth will be largely driven by the gold sector, which is expected to benefit from both rising prices and increased output. Gold prices are forecasted to hit record highs of around US$3,000 per ounce, spurred by safe-haven demand amidst geopolitical tensions and monetary easing in major economies.
However, the mining industry is not without its risks. Fragile power supplies, foreign exchange shortfalls, capital shortages, and high operational costs—including electricity tariffs and fiscal charges—pose potential threats to the sector’s outlook. These challenges, if left unchecked, could hinder the industry’s ability to capitalize on the favorable gold market and other mineral expansions.
Globally, commodity markets are expected to face a bearish trend in 2025, with the World Bank Commodity Price Index projected to decline by 5%. This decline is attributed to weak global demand, especially from China, and an oversupply in several key commodities such as platinum, palladium, and nickel. Despite these global pressures, Zimbabwe’s focused efforts on boosting local production and attracting foreign investment will be crucial in sustaining its mining growth.
Though subdued, the outlook for other minerals, such as lithium and coal, still holds potential due to long-term demand from the energy transition. Exploration activities continue to rise globally, particularly in critical minerals, and Zimbabwe’s focus on ramping up production in these areas could play a pivotal role in its future mining strategy.
According to the report, while the global economic environment presents numerous challenges, Zimbabwe’s mining sector is well-positioned to achieve steady growth in 2025. With continued investments, expansion efforts, and favorable gold prices, the country’s mineral industry is poised to contribute substantially to its economy, despite broader market uncertainties.
