WHILE foreign direct investment (FDI) continues to be promoted as a key driver of Zimbabwe’s economic recovery, lawmakers have raised concerns over whether such investments are delivering tangible benefits to ordinary citizens.
Members of Parliament from Matabeleland warned that without strict enforcement of labour, environmental and beneficiation policies, Zimbabwe risks remaining a mere exporter of raw minerals while communities hosting mining projects see little improvement to their livelihoods.
Bulawayo North legislator Minihle Gumede said investment was welcome and necessary, particularly at a time when the country urgently needed economic growth, job creation and industrial expansion.
She said growth in the mining sector, supported by FDI, had the potential to unlock significant opportunities for Zimbabwe.
“Such investment must be guided by deliberate and enforceable policies that prioritise beneficiation and value addition, in line with the vision articulated by the President in the State of the Nation Address,” Gumede said.
She warned that without firm enforcement, Zimbabwe will continue supplying raw minerals while other countries enjoy the full economic benefits of processing and manufacturing.
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Gumede expressed concern over foreign, particularly Chinese, investment in the mining sector, arguing that many operations focused largely on the extraction and export of unprocessed minerals.
She said the practice resulted in lost opportunities for local industrialisation, skills development, employment creation and high export earnings.
Gumede said if minerals were processed locally before export, the country would realise far greater economic returns.
“There are persistent complaints from communities regarding violations of labour laws and environmental degradation linked to some mining activities,” she said.
She said these concerns raised serious questions about sustainability, accountability and social responsibility, noting that communities were often left to deal with environmental damage while gaining little tangible benefit from
the resources extracted in their areas.
“What are local communities truly benefiting from such investments?” she asked.
Emakhandeni Luveve legislator Decent Bajila expressed similar sentiments, saying attracting investors was important, but their presence must be reflected in reduced unemployment.
“If we are attracting investors, we must see a reduction in unemployment, young people should be getting jobs instead of turning to intoxicating substances out of frustration,” he said.
Bajila said without visible job creation, it was difficult to see material evidence of such investors, describing them as tourists rather than true partners in development.
He said Zimbabwe was well marketed in the global east and that investors were coming in, but the major challenge was that most investments were centred on extracting natural resources for export with little or no local value addition.
“Value addition create far more jobs than extraction alone,” he said.
Bajila argued that if the government was serious about creating employment through beneficiation, Zimbabwe should by now be manufacturing lithium batteries instead of exporting raw lithium.
“The continued export of unprocessed minerals undermined the country’s industrial potential and long-term economic prospects,” he said.
Both lawmakers agreed that without stronger enforcement of existing policies and laws, investment will continue to benefit foreign interests more than local communities, rendering Zimbabwe’s vast natural resources a missed opportunity rather than a foundation for inclusive development.