ZIMBABWE’S mining sector needs about US$10 billion in new investment over the next five years to sustain output growth and expand operations, but tightening access to offshore finance is emerging as the biggest risk to one of the country’s strongest-performing industries, the Chamber of Mines has warned.
Addressing delegates at the Chamber of Mines annual conference recently, immediate past president John Musekiwa said the funding gap was widening as mining companies struggled to attract foreign capital, forcing many operators to rely on retained earnings despite ambitious expansion plans across key mineral commodities.
“The funding gap to optimise operations and meet output targets remains huge,” he said.
“Approximately US$10 billion is required by the industry in the next five years for sustenance and ramping up output. A significant number of mining companies are struggling to raise offshore funding, thus relying on internally- generated resources or retained earnings.”
The warning comes as the mining industry enjoys one of its strongest performances in recent years, highlighting the growing disconnect between rising production and the sector's ability to finance future growth.
According to the Chamber of Mines, the industry grew by about 7% in 2025, up from 2,3% in 2024, while export earnings rose to a record US$8,5 billion from US$5,9 billion, driven by higher output and stronger prices for gold and platinum group metals.
Keep Reading
- SARCOF-26 springs hope in agric and energy sectors
- ‘Power cuts choke mines, industry’
- Zela pokes holes into Mines Bill
- CSOs flag rising mining sector deaths
Mining accounts for about 81% of Zimbabwe’s export earnings, contributes 14,5% of gross domestic product and provides roughly 20% of government revenue through taxes and levies.
Despite the strong performance, Musekiwa said the sector continued to face high production costs, unreliable electricity supply, foreign currency shortages and policy constraints that were undermining investor confidence.
He said mining companies undertaking expansion projects and beneficiation investment were increasingly struggling to secure sufficient foreign currency to import equipment and service offshore obligations.
“Our mining houses, specifically those undertaking expansion projects and constructing beneficiation facilities, report that their available foreign currency is inadequate to meet the requirements,” Musekiwa said.
He appealed to the government to allow mining companies with legitimate foreign currency requirements to participate more freely on Zimbabwe's willing-buyer, willing-seller foreign exchange market to bridge funding shortfalls.
Musekiwa also said delays in receiving payment for the surrender portion of export proceeds were squeezing company cash flows and slowing capital investment programmes.
“Some mining companies, especially in the platinum group metals and gold sectors, are facing delays in payment for the surrender portion of export proceeds. This has adversely affected operating cash flows as well as delayed implementation of capital projects,” he said.
Electricity shortages remain another major constraint, despite government efforts to prioritise power supply to mining operations.
While acknowledging these efforts, Musekiwa said some companies were still experiencing outages, forcing them to rely on costly diesel generators that significantly increase production expenses.
The chamber also cited high royalties, multiple taxes and levies, elevated capital costs, and uncompetitive electricity tariffs as factors eroding Zimbabwe’s competitiveness against rival mining jurisdictions.