Story by Theophilus Chuma
EXPERTS say the recent ban of raw mineral exports highlights a strategic shift towards enhanced resource governance, which emphasises industrial development over traditional commodity extraction.
The move has been described as a huge step, highlighting strong commitment to domestic value addition strategies.
The policy shift is not peculiar to Zimbabwe, Indonesia implemented a similar venture, ensuring it derives maximum value from its nickel commodity.
With a rich mineral resource base, Zimbabwe could potentially boost its export revenue earnings through value-adding its products.
The mining industry is a central pillar to national development, accounting for 70 percent of the total export earnings.
The stance by the government to enhance the value of commodities is therefore viewed as a calculated effort to marry economic growth and mineral wealth.
“According to the Chamber of Mines, out of the total order bill in Zimbabwe, despite the fact that 80% of what we export is minerals, we only retain in this country 12% as what is manufactured here.
“We need to raise that gradually, maybe 30%. The national industrial policy says we need to grow it to a billion dollars currently. Right now, in terms of beneficiated manufacturing for mining, it is less than $200 million in the country. That figure must grow,” Buy Zimbabwe Founder Mr Munyaradzi Hwengere said.
“Prices in China went up 6%, literally the next day, which means Zimbabwe matters. So we are competitive in that space. But we have Africa to supply to as well, in terms of batteries, in terms of other materials that may be needed as well. However, as long as we continue exporting rocks, then we must understand that we are investing in poverty for the future,” he added.
Africa is pushing for nations to move away from being global suppliers to global negotiators and Botswana is a perfect example through its diamond cutting and polishing industry.
The Zimbabwe Miners Federation (ZMF) is equally convinced about the expected benefits of the export ban.
“I think this process was long overdue, given the rich mineral resource base for Zimbabwe and the opportunity to maximise on the true value of its products. The position assumed by government is reflective to the trajectory across Africa, where nations are benchmarking industrial transformation through resource beneficiation and reducing dependence on raw material exports to developed economies,” ZMF president Ms Henrietta Rushwaya stated.
“This is a shift from being a global supplier to a global negotiator.
Processed minerals command significantly higher prices than raw concentrates. Given that Zimbabwe ranks among the top lithium producers, value adding on this commodity positions the country as a competitive supplier for battery-grade products. Over and above this, this position also informs Vision 2030 development strategy, which emphasises industrial transformation and value-addition .”
The expectation is that Zimbabwe will have rapid revenue optimisation, which could be treble or fivefold.
President Dr Emmerson Mnangagwa has emphasised that value addition is the way to go.
“Dependence on raw exports is no longer sustainable nor desirable. We must earn more from every tonne, every kilogramme, and every product we export. The situation where jobs, value and industrial opportunities are lost is untenable. The value must be created locally and domesticated here in our factories, processing plants, innovation hubs, and within communities. In the mining sector, our policy is unequivocal. Zimbabwe is no longer satisfied with being a supplier of raw minerals. Under my administration, focus is on local processing, diversifying downstream industries, technology transfer and stronger linkages across the economy,” the President said.
Beneficiation is a critical tenet to enhancing economic development through unlocking gains in revenue and employment creation.
