Mining boom shields Zimbabwe economy from shocks

Zimbabwe is banking on strong growth in its mining sector to cushion the economy from mounting global uncertainty triggered by escalating tensions in the Middle East, with authorities projecting mineral export earnings of between US$6.5 billion and US$7 billion this year.

The ongoing conflict involving the United States, Israel and Iran has unsettled global markets, driving up oil prices and increasing the cost of goods and services worldwide. While many economies face growing pressure from rising energy costs and geopolitical instability, Zimbabwe believes robust performance in the mining industry will help offset some of the external shocks.

Government officials say rising gold prices, improving prospects for platinum group metals (PGMs) and growing lithium beneficiation activities are expected to strengthen foreign currency inflows and support economic stability.

Mining remains one of Zimbabwe's most important economic sectors, contributing between 13 percent and 15 percent of gross domestic product and accounting for a significant share of export earnings.

Speaking to Business Times, Mines and Mining Development Minister Dr Polite Kambamura said the sector was positioned for stronger growth during the second half of the year.

"In the first half of the year, we had about US$2 billion in revenue inflows to the fiscus. Going forward, we are looking at around US$6.5 billion to US$7 billion in export receipts," said Dr Kambamura.

"We expect this to be anchored by minerals such as gold. World market prices for gold are continuing to firm up. PGM prices are also recovering and the emergence of lithium sulphate products is a feather in our cap in terms of improving revenue for Government."

He said ongoing efforts to promote value addition and beneficiation would further enhance earnings from mineral exports.

Gold continues to dominate Zimbabwe's export basket. During the first months of 2026, the precious metal accounted for nearly half of total merchandise exports and more than 60 percent of mining export revenues.

The metal has benefited from heightened global uncertainty, with investors increasingly seeking safe-haven assets amid geopolitical tensions and economic volatility.

At the same time, the recovery of platinum group metal prices and the rapid expansion of lithium mining and processing activities are expected to provide additional support to the sector.

Dr Kambamura said Zimbabwe was making progress in moving away from the export of raw minerals toward higher-value processed products.

He revealed that operators at the Arcadia Lithium Mine in Goromonzi were preparing to commence production of lithium carbonate, a higher-value product used in battery manufacturing and energy storage technologies.

The development forms part of Government's broader beneficiation strategy aimed at increasing domestic value addition, creating jobs and boosting foreign currency earnings.

Proposed amendments to the Mines and Minerals Bill are also expected to support local processing initiatives, particularly within the lithium sector, which has emerged as one of Zimbabwe's fastest-growing mining industries.

Industry analysts say the shift towards lithium beneficiation could strengthen Zimbabwe's position within the global battery minerals supply chain as demand for electric vehicles and renewable energy technologies continues to grow.

Beyond increasing production and exports, the Ministry of Mines and Mining Development is also pursuing reforms designed to improve governance and transparency within the sector.

Dr Kambamura challenged ministry officials to eliminate corruption and ensure equal treatment of all miners.

"All miners should be treated the same no matter where they come from. I want ministry officials to serve the grandfather from Kadoma in the same manner they serve influential people. We are here to serve the people of Zimbabwe without fear or favour," he said.

The minister also set an ambitious target for the ministry to become the best-performing government department by the end of the year.

"I want the Ministry of Mines and Mining Development to be recognised as the best-performing ministry in government, measured not by our words but by our results," he said.

Deputy Minister Caleb Makwiranzou said key priorities include the completion of the Mining Cadastre System, modernisation of equipment and technology, staff development and improved records management.

The Mining Cadastre System is expected to enhance transparency in the allocation and administration of mining claims while reducing delays and administrative bottlenecks that have historically affected investment in the sector.

As global economic uncertainty persists, authorities are increasingly looking to mining as a critical source of resilience, foreign currency generation and long-term economic growth.

With commodity prices remaining favourable and beneficiation initiatives gathering momentum, Zimbabwe's mining sector is expected to play a central role in supporting the economy through a challenging international environment.