Zimbabwe’s mining industry has warned that high taxes, costly electricity, foreign currency shortages and constrained access to capital are eroding the country’s competitiveness and threatening investment in a sector that generated a record US$8.5 billion in export earnings last year.
Addressing the Chamber of Mines annual conference, outgoing Chamber president John Musekiwa said rising operating costs and financing challenges risk undermining production growth targets despite a strong recovery in the sector.
“The viability and competitiveness of our operating environment continue to be undermined by suboptimal cost structures characterised by high royalties and levies, high capital costs and uncompetitive electricity tariffs,” Musekiwa said.
His remarks come as Zimbabwe positions mining as a key driver of economic growth and foreign currency generation.
The sector expanded by about 7% in 2025, up from 2.3% in 2024, supported by increased output from gold, coal and methane. Export earnings surged to a record US$8.5 billion from US$5.9 billion the previous year.
The Chamber projects mining growth of 10% in 2026, with gold output expected to rise from 50.6 tonnes to about 55 tonnes, generating roughly US$5 billion in export earnings. Platinum group metals exports are forecast to reach US$2 billion, while lithium exports are expected to increase to US$700 million as production climbs to three million tonnes.
However, Musekiwa said those targets could be difficult to achieve unless government addresses structural challenges affecting the industry.
Mining accounts for 81% of Zimbabwe’s export earnings, contributes 14.5% of gross domestic product and provides about 20% of government revenue through taxes and levies.
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Despite its importance to the economy, the sector is facing growing difficulties in financing expansion projects and beneficiation investments.
“Our mining houses, specifically those undertaking expansion projects and constructing beneficiation facilities, are reporting that their available foreign currency is inadequate to meet the requirements,” Musekiwa said.
He urged authorities to allow mining companies greater access to the willing-buyer willing-seller foreign exchange market.
“It is our humble plea that the government allows mining companies to participate on the willing buyer, willing seller platform, specifically for legitimate forex requests to supplement forex requirements,” he said.
The Chamber also raised concerns over delays in payments for the surrendered portion of export proceeds, saying the bottlenecks were weakening liquidity and slowing investment.
“Some mining companies, especially in the PGMs and gold sector, are facing delays in payments for the surrender portion of export proceeds. This has adversely affected operating cash flows as well as delays in the implementation of capital projects,” Musekiwa said.
Power shortages remain another significant challenge despite efforts to prioritise electricity supplies to mining operations.
Musekiwa said some producers continue to experience outages, forcing them to rely on expensive diesel-powered generators and pushing up production costs.
The Chamber warned that limited access to funding could delay new projects and slow future output growth at a time when global demand for gold, platinum group metals and lithium remains strong.
Musekiwa nevertheless welcomed ongoing consultations with government over amendments to the Mines and Minerals Act, saying progress on the legislation could help improve investor confidence.
“We are confident that the government will expedite the process and ensure that the Bill is passed into law incorporating the key submissions that we presented. This will give confidence to the investing public and promote the growth and development of our mining industry,” he said.
