Zimbabwe’s mining sector is experiencing a robust recovery in 2025, with projections indicating a 5.6% growth, driven by improved global commodity prices and increased investment. The government’s strategic initiatives and favorable market conditions are contributing to the industry’s positive trajectory.
Finance Minister Mthuli Ncube forecasts a 6% overall economic growth for 2025, up from 2% in the previous year. The mining sector is expected to grow by 5.6%, rebounding from a modest 2.3% growth in 2024. This growth is attributed to rising prices for key minerals such as gold, platinum group metals (PGMs), and diamonds, as well as improved energy production following recovery from a severe drought.
The mining industry is projected to generate approximately US$6 billion in export revenues in 2025, bolstered by ongoing expansion projects and favorable commodity prices. Notable investments include a $310 million lithium concentrator project by Kuvimba Mining House and a $250 million gold mine project by Caledonia Mining Corporation. These investments reflect growing confidence in Zimbabwe’s mining sector.
Employment in the mining sector is anticipated to increase by 3% in 2025, reaching approximately 58,700 formal jobs. This growth is driven by new and ongoing mining projects. Additionally, capacity utilization in the sector is expected to rise to 90%, up from 84% in the previous year, indicating enhanced operational efficiency.
Despite the positive outlook, the sector faces challenges such as power supply constraints and high production costs. The government has introduced new tax measures, including a 2% levy on lithium exports and the discontinuation of tax reliefs for mining companies, to encourage local processing and beneficiation of minerals. These policies aim to enhance value addition within the country.
Looking ahead, the government aims to transform Zimbabwe’s mining sector into a US$40 billion industry by 2030, with gold, platinum, and ferrochrome leading the contributions. This ambitious goal underscores the sector’s pivotal role in the nation’s economic development.
In summary, Zimbabwe’s mining industry is poised for significant growth in 2025, supported by favorable market conditions, substantial investments, and strategic policy initiatives. While challenges remain, the sector’s progress reflects a positive trajectory toward achieving long-term economic objectives.
