The Zimbabwean mining sector is on the rise, as gold, platinum, chrome, coal and nickel sectors have contributed to a 5.1% increase.
Patrick Chinamasa, Finance Minister, said that the sector will continue to grow this year following an overall growth of 8.2% in 2016.
While the industry will grow, the contribution to Zimbabwe’s GDP remains inconsequential, something that a new mining fiscal regime will look to address.
“… however, mention that, notwithstanding the positive growth in mining, and the sector being number one contributor to foreign exchange earnings, its contribution to the fiscus remains low, accounting for a meagre 2,2 percent of total revenues in 2016.
“The finalisation of the Mining Fiscal Regime will therefore address this challenge,” the treasury chief said in his 2016 annual budget review,” he said.
Mineral exports from Zimbabwe had amounted to more than $3.2 billion in 2016 and the output from small-scale miners also saw significant improvement, reaching 42.6% of total gold output in 2016, up from the 36.7% in 2016.
This growth looks set to continue, with the capitalisation of Zimbabwe Consolidated Diamond Company and other on-going reforms in the diamonds and coal industry already yielding dividend.