New Zimbabwe mining regime in pipeline

The government is crafting a new mining fiscal regime to come up with tax incentives for investors.

A recent letter of intent to the International Monetary Fund (IMF) compiled by the Ministry of Finance and the Reserve Bank of Zimbabwe (RBZ) confirms that cabinet has agreed on the principles of the mining fiscal regime which is aimed at increasing revenues without undermining investors' interest.

The government has also developed a fiscal model for the mining industry revenues monitoring and projections to plug income leakages from the sale of mineral commodities, according to the letter.

An investment analyst, Mr Kuda Gwasera said the mining fiscal regime will ensure accountability by mining companies in declaring mineral export receipts.

"It is a critical aspect that can in the long term facilitate better returns in the industry," said Mr Gwasera.

An economic analyst, Dr Chris Kasiyazi said the proposed mining fiscal regime is an indication of commitment by the government to increase investment inflows from the resource extraction sector.

"The nation is lacking in terms of investments but once such an element is brought forward, we are likely to witness an increase in volumes," he said.

According to the letter of intent, amendments to the Mines and Minerals Act together with the new mining fiscal regime will be submitted to cabinet once stakeholder consultations are finalised.