ZIMBABWE’S mining industry has issued its starkest warning yet over the country’s foreign currency regime, saying a shortage of the green back is threatening to stall expansion in an industry that generated a record US$8,5 billion in export earnings last year and remains the backbone of the national economy.
Outgoing Chamber of Mines of Zimbabwe president John Musekiwa yesterday said mining companies were battling to finance expansion projects, import machinery and build beneficiation plants because they could not access sufficient foreign currency, despite producing 81% of the country’s export earnings.
The industry is now urging government to allow mining companies direct access to the willing buyer-willing seller foreign exchange market, arguing that existing arrangements are starving producers of the capital needed to sustain growth.
“Our mining houses, specifically those undertaking expansion projects and constructing beneficiation facilities, are reporting that their available foreign currency is inadequate to meet the requirements,” Musekiwa told delegates at the Chamber of Mines annual conference in Victoria Falls.
“It is our humble plea that government allows mining companies to participate on the willing buyer, willing seller platform for legitimate foreign currency requirements.”
The appeal comes as Zimbabwe seeks to position itself as a leading supplier of gold, platinum and lithium to global markets, with the Chamber forecasting mining growth of 10% this year after the sector rebounded by 7% in 2025 from 2,3% the previous year.
The recovery pushed mining exports to a record US$8,5 billion, up from US$5,9 billion in 2024, driven by strong gold production and favourable international prices.
Gold output alone is expected to rise to about 55 tonnes this year, generating around US$5 billion in exports, while platinum exports are projected to reach US$2 billion and lithium exports US$700 million.
But Musekiwa warned that those ambitious targets could prove elusive unless government addresses mounting liquidity constraints that are increasingly limiting investment across the sector.
Several mining companies, he said, had already exhausted internally generated foreign currency and were struggling to finance mine expansion and downstream processing projects.
The chamber also raised concern over delays in the payment of the surrendered portion of export proceeds, saying the slow release of funds was disrupting operating cash flows and delaying capital investment, particularly in the gold and platinum industries.
The foreign currency squeeze forms part of a broader deterioration in the mining operating environment, according to the Chamber.
Musekiwa said high royalties, multiple taxes and levies, expensive electricity tariffs and rising capital costs were steadily eroding Zimbabwe’s competitiveness at a time when African countries are competing aggressively for mining investment.
“Notwithstanding, the viability and competitiveness of our operating environment continue to be dodged by suboptimal cost structures characterised by high royalties and levies, high capital costs, and uncompetitive electricity tariffs,” he said.
Electricity shortages remain another major obstacle
Although power utility Zesa Holdings has prioritised electricity supplies to mining companies, many operations continue to suffer frequent outages, forcing producers to rely on costly diesel generators to keep mines operating.
Beyond operational pressures, the Chamber warned that sustaining projected production growth will require about US$10 billion in fresh investment over the next five years.
However, offshore capital remains difficult to secure, leaving many companies dependent on retained earnings that are themselves being squeezed by foreign currency shortages and delayed export proceeds.
Musekiwa welcomed government’s engagement with the industry on amendments to the Mines and Minerals Act and recent clarification of its critical minerals policy, saying investors now needed legislation that would provide certainty over ownership rules and encourage long-term capital inflows.-newsday
