Zimbabwe misses mineral revenue target

Zimbabwe faces a challenging economic outlook for 2024, with economists warning of reduced foreign exchange reserves, diminished government revenue, and decreased economic activity due to lower global metal prices.

The Minerals Marketing Corporation of Zimbabwe (MMCZ) reported that in the first half of 2024, the country sold 1.9 million metric tonnes of minerals (excluding gold and silver), valued at $1.5 billion. This fell short of the target of 2 million metric tonnes worth $2.03 billion, representing a 6% volume shortfall and a 26% revenue shortfall. The decline is attributed to depressed global metal prices.

Economists like Stevenson Dhlamini and Prosper Chitambara predict significant negative impacts on Zimbabwe's economy, including reduced foreign exchange reserves, diminished government revenue, limited public expenditure, decreased economic activity, and potential setbacks in mining sector investment. The mining sector's performance affects other industries such as transportation, manufacturing, and construction, potentially leading to job losses.

Experts suggest that moving towards mineral beneficiation - processing minerals within the country - could mitigate these risks and improve economic stability. The current heavy dependence on primary products makes Zimbabwe vulnerable to price and demand fluctuations.

Despite some increases in prices for platinum, rhodium, copper, fluorite, and chrome concentrates, they were insufficient to counterbalance the overall revenue decline. However, spodumene sales significantly exceeded expectations, surpassing budgeted targets and showing a substantial increase in both volume and value.