Mining contributes 19pc in taxes, levies

Zimbabwe’s mining sector last year contributed 19 percent of its revenue as taxes and levies to the Government while the average for sub-Saharan mining industry was 8,1 percent. In terms of exports, in the period under review, the sector accounted for 80 percent compared to 51,2 percent in the region while foreign direct investment was 73 percent compared to 31,7 percent for the region.

For gross domestic product (GDP) contribution, Zimbabwe registered 13,5 percent while in the region the average was 8,8 percent. The growth in employment figures was two percent compared to 1,8 percent for the region.

Last year, the mining sector generated US$5,6 billion with the bulk of the revenue going towards procurement with US$2,5 billion (46 percent), wages and salaries US$1,3 billion (24 percent) Government taxes and levies US$1 (19 percent) shareholders and others provisions accounted for US$619 000 (11percent).

Money – Image taken from Pixabay

In the period under review, the Chamber of Mines said the sector’s employment figures increased from 53 452 in 2011 to 53 663 last year.

The gold sector employed the bulk of employees accounting for 58 percent.
The platinum group of metal sector absorbed 14 percent of workers, diamond sector accounted for 12 percent, coal (eight percent), while nickel, chrome granite and other miners had two percent employment rates.

The chamber of mines chief executive officer, Mr Isaac Kwesu said during the period under review, the mining industry grew by 10 percent on the back of firm commodity prices.

The sector generated a record US$5,6 billion in export earnings compared to US$5,1 billion in 2021.
“In the outlook, the sector is projected to further grow by 10,4 percent in 2023, on the back of the ongoing expansion projects and attractive mineral prices.

Average capacity utilisation for the mining industry is expected to increase to 84 percent in 2023 compared to 81 percent in 2022,” reads part of the chambers 2022 annual review report.

Mr Kwesu noted that mineral export earnings are expected to surpass US$6 billion in 2023.
“Notwithstanding the above, the potential of the mining sector continued to be undermined by foreign currency shortfalls, fragile power supply, capital shortages, high-cost structure.

The Chamber of Mines engaged authorities on these and other outstanding legislative and policy matters including Amendments to the Mines and Minerals Act, fiscal matters and Indigenisation and Economic Empowerment.”-chronicle