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Low investor confidence hits mining sector


The mining sector has been hit by low investor confidence due to unclear government policies, a top mining executive has said.

In a speech read on his behalf by Mimosa executive director Herbert Mushanyare, Chamber of Mines president Winston Chitando on Wednesday, at the Mine Entra conference in Bulawayo, said investor confidence “has been badly shaken”.

He said the organisation was eager to see the finalisation of the indigenisation programme.

“In recent times changes in the operative environment have shaken confidence among investors, which is a critical issue,” Chitando said.

“Confidence has been badly shaken and it’s critical to stabilise and foster confidence.

“The chamber stands ready to partner with stakeholders to restore confidence.”

The 17th edition of Mine Entra kicked off on Wednesday under the theme “Reveal Local Treasures, Strike Global Returns”.

He said Mining industry keenly aware of the need for industry to be a major driver of economic recovery and development.

“Through a process of engagement, we are convinced that a win-win situation can be found that allows the government to meet its development agenda and at the same time allow investors to realise acceptable return on investment,” he said.

“Goodwill exists among the domestic and foreign investors which the country can take advantage of.
“There is a lot within the country’s capacity to act and resolve.

“The mining industry is convinced that by taking action on those issues that are within the country’s capacity to do, the investment community will then respond based on the goodwill, the knowledge and interest that exists.”

Chairman of Joint Suppliers and Purchasing Committee Phillimon Machana said the state of the country’s supply sector is in doldrums.

He said suppliers were faced with a myriad of challenges ranging from lack of working capital, aged equipment and competition from outsiders.
“Cost of finance is high, in excess of 20%, yet outside competitors for instance in South Africa, are getting loans for around 2,5%.

“Outsiders are well funded compared to us ,” he said.

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