Zimbabwe’s mining sector expects a 7% growth in 2023, boosted by expansion projects and favorable mineral prices. Gold, platinum, and diamond production are predicted to increase amid a tougher tax environment. The government aims to capitalize on foreign currency earnings from mines to address its revenue crisis, while miners are in talks with officials to navigate new taxation challenges.
The Zimbabwe mining sector anticipates a 7% growth in 2023, driven by ongoing expansion projects and favorable international mineral prices, despite facing challenges from increased taxation and high lending rates. This growth is projected to outpace previous years, with expectations of 5% growth in 2024 and 4% in 2022.
Isaac Kwesu, CEO of the Chamber of Mines of Zimbabwe, indicated that the mining sector’s output could average a growth rate of around 7% in 2025. Mineral revenue is expected to rise to approximately US$6 billion from US$5.5 billion in 2024, bolstered by expansion activities and a recovery in commodity prices. Active sectors include gold, platinum, and diamonds, with gold production projected to increase by 9% to roughly 41 tonnes.
The Zimbabwean government has intensified its taxation efforts, targeting formally registered companies, including mining operations. This approach seeks to mitigate revenue losses associated with businesses shifting to the informal sector, thereby broadening the tax base and generating revenue from entities that primarily earn in foreign currency.
Despite the taxation pressures, the mining sector is engaged in negotiations with the government to address these challenges, suggesting that collaboration may ease the adverse impacts of the new tax policies. The mining industry remains critical to the country’s revenue and economic stability, particularly given its foreign currency earnings.
The Zimbabwe mining sector is poised for recovery, forecasting a significant growth in output and revenue in the coming years. This optimistic outlook comes amidst challenging tax environments and high interest rates. Through ongoing expansion projects and favorable price trends, the sector aims to overcome hurdles while ensuring contributions to the national economy through strategic negotiations with the government.
Original Source: africanminingmarket.com
