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The country’s biggest platinum group metal (PGM) producer, Zimplats, contributed over US$106 million (R2.03 billion) in taxes to the Zimbabwean government in 2024, the company’s parent company, Impala Platinum (Implats), stated in its 2024 Tax Transparency and Economic Contribution Report.
By Rudairo Mapuranga
This considerable tax payment underscores Zimplats’ pivotal role not only as a mining giant but also as a key financial contributor to the Zimbabwean economy, with its operations continuing to support national development through fiscal contributions, local procurement, and employment creation.
Zimplats’ contribution of US$106 million in taxes to the Zimbabwean government for 2024 represents one of the largest single fiscal injections from any corporate entity in the country. The tax payments are broken down into direct taxes amounting to R1.768 billion and indirect taxes totaling R262 million, with the company making payments for both income tax and state royalties. This significant contribution comes at a time when Zimbabwe’s economy needs stable revenue flows to fund critical infrastructure projects, healthcare systems, and educational programs.
In addition to tax payments, Zimplats continues to drive local development through its significant expenditure on local procurement. The company spent R13 billion (US$688 million) on procurement activities in 2024, of which 51% (R7 billion, or US$356 million) was spent on in-country procurement. This has not only helped substitute imports but also stimulated local enterprise development, thereby supporting the growth of small and medium-sized enterprises (SMEs) in Zimbabwe.
Zimplats’ local procurement efforts form a key part of its strategy to ensure that the value generated by its mining activities remains within the Zimbabwean economy. By engaging local suppliers, contractors, and service providers, the company helps build capacity in the country’s industrial and commercial sectors, thereby fostering economic resilience. Local procurement also creates jobs in related sectors such as logistics, construction, and manufacturing, contributing to the overall reduction of unemployment in the country.
Moreover, Zimplats has been instrumental in supporting community development initiatives through its corporate social responsibility (CSR) programs. In 2024, the company maintained its commitment to improving the living standards of communities surrounding its operations, with investments in education, healthcare, and infrastructure projects. Zimplats’ role in local communities is not just about creating jobs but also about building a sustainable future for Zimbabwean citizens by enhancing social services and supporting economic opportunities in rural areas.
The 2024 Tax and Economic Contribution Report by Implats also highlights Zimplats’ broader economic value distribution. For the year, Zimplats generated a gross value of R13.66 billion (approximately US$717 million), a substantial amount that underscores the company’s ability to generate wealth while balancing the interests of various stakeholders. The report reveals that a significant portion of this value was distributed to employees, communities, business partners, governments, lenders, and shareholders.
Employees and contractors: R3.115 billion (US$163 million) was distributed to the company’s workforce, highlighting Zimplats’ role as a major employer in Zimbabwe. In total, Zimplats employed 8,857 people, providing much-needed jobs and supporting livelihoods in the region. The company’s operations have become a key source of employment, contributing to the reduction of unemployment and poverty in Zimbabwe, particularly in the mining communities of Mashonaland West and the Midlands.
Communities, suppliers, and business partners: R6.845 billion (US$359 million) was paid to communities, suppliers, and business partners, demonstrating Zimplats’ commitment to maintaining strong relationships with its local and regional stakeholders. The company’s focus on partnering with local businesses and service providers has not only helped boost the local economy but has also enhanced Zimbabwe’s industrial base, fostering the growth of ancillary industries around mining activities.
Governments: A combined amount of R1.732 billion (US$91 million) was distributed to governments, including payments for state royalties and direct taxes. This reflects Zimplats’ commitment to fulfilling its fiscal obligations and contributing to the country’s national budget.
Lenders and shareholders: Zimplats also made payments to lenders and shareholders. R1.637 billion (US$86 million) was paid in dividends to shareholders, while the company also serviced its financial obligations to lenders. This demonstrates Zimplats’ financial stability and ability to generate returns for its investors while also supporting its capital structure and operational activities.
Zimplats remains committed to driving sustainable mining practices and long-term investment in Zimbabwe. In line with the country’s economic empowerment policies, the company has made efforts to integrate environmental, social, and governance (ESG) standards into its operations. This includes responsible resource management, investments in renewable energy, and continued compliance with Zimbabwe’s environmental regulations.
The company’s Community Share Ownership Trust (CSOT) also reflects its dedication to ensuring that local communities benefit directly from mining activities. Through the CSOT, communities in the vicinity of Zimplats’ operations are granted a stake in the company, allowing them to share in the profits generated from mining. This initiative has not only strengthened Zimplats’ relationship with local communities but has also provided them with a financial safety net, enabling them to invest in social services such as education and healthcare.
Looking ahead, Zimplats remains focused on sustaining its operations while continuing to contribute to the Zimbabwean economy. The company is optimistic about the future as it continues to invest in new technologies, expand its mining operations, and improve its production capabilities. The planned construction of a base metal refinery at its operations is expected to further boost the country’s industrialization efforts and enhance Zimbabwe’s position as a major global player in the platinum group metals market.
