THE Mutapa Investment Fund says the African Continental Free Trade Area (AfCFTA) will expand African export markets for Zimbabwe’s battery minerals, steel inputs and other key commodities.
Zimbabwe’s sovereign wealth fund said this would create new opportunities to grow exports in line with Zimbabwe’s National Export Strategy, which targets to increase trade shipments by 10 percent annually.
Mutapa was established to manage state-owned enterprises (SOEs) and strategic investments to create national wealth and support economic growth towards the national vision of an upper-middle-income status by 2030.
The fund’s US$16 billion asset portfolio straddles mineral resources, agriculture and industrials, energy and trading, information communication technology, transport and logistics, banking and finance and financial services and real estate.
The removal of tariff and non-tariff barriers under AfCFTA, Mutapa said, would enhance intra-African trade, positioning local electric vehicle battery mineral producers to tap into a larger and more integrated continental market.
Mutapa, which has exposure to several strategic mining assets valued at US$2,4 billion as of December 2024, said Zimbabwe’s battery minerals would be among the key beneficiaries of the continental trade bloc, operationalised on January 1, 2021.
The AfCFTA agreement encompasses 55 member states of the African Union, with 54 having signed the agreement and 47 having ratified it as of early 2024. It connects markets with approximately 1,3 billion people and US$3,4 trillion gross domestic product.
Mutapa’s mining portfolio includes lithium, nickel and chrome, minerals that are critical in the global energy transition, electric vehicle manufacturing and steel production.
In its inaugural annual report and first set of audited financial statements, Zimbabwe’s sovereign wealth manager said it would continue to position its assets to capitalise on emerging regional trade opportunities as the AfCFTA implementation gains momentum, particularly in minerals aligned with Africa’s industrial and energy transition agenda.
“Market demand forecasts remain varied across different minerals; however, the fund’s diversified asset base provides a natural hedge against commodity-specific volatility.
“The operationalisation of the AfCFTA is expected to broaden regional markets for battery minerals, steel inputs and other commodities, offering new avenues for export growth,” said Mutapa Investment Fund chief executive officer Dr John Mangudya in the sovereign wealth fund’s inaugural annual report.
Mutapa noted that the AfCFTA, which seeks to create a single African market for goods and services, will stimulate demand across regional value-chains, including battery manufacturing, stainless steel production and other downstream processing activities.
This, in turn, could reduce over-reliance on traditional export destinations outside the continent.
Dr Mangudya acknowledged that market demand forecasts remained varied across different minerals.
The AfCFTA could be a game-changer for mineral-rich economies like Zimbabwe, enabling local producers to benefit from regional industrialisation and value-chain integration, while strengthening export earnings.
Dr Mangudya also highlighted that Mutapa’s mining flagship company, Kuvimba Mining House (KMH) required an estimated US$950 million to scale up operations across its gold, lithium, platinum and chrome assets, as part of a medium to long-term strategy to improve operational efficiency, expand its mineral resource base and drive growth across all mining clusters.
The capital injection will support mine development, plant upgrades, mechanisation and exploration activities.
This is expected to increase KMH’s production volumes and improve cost competitiveness.
According to Dr Mangudya, exploration campaigns would continue with a dual focus on identifying new deposits and extending the life of existing mines.
“Several capital projects are already in the development pipeline, and KMH intends to mobilise approximately US$950 million to scale mining operations across gold, lithium, platinum, and chrome.”
Mining and metallurgical assets under the KMH include Bio Metallurgical Zimbabwe, Bindura Nickel Corporation, Freda Rebecca Gold Mine, Great Dyke Investments, Homestake Mining and Technical Services, Jena Mines, Kwekwe Consolidated Gold Mines, Mineral Development, Shamva Mining Company, Sandawana Mines and Zimbabwe Alloys.
Mutapa also holds interests in Hwange Colliery Company, Defold Mine, Kamativi Tin Mines, Transminerals and the Zimbabwe Consolidated Diamond Company (ZCDC).-herald
