Beneficiation: Govt takes lead 

Source: Beneficiation: Govt takes lead – herald

Debra Matabvu

Herald Reporter

GOVERNMENT has identified at least eight mining sites — mainly in the lithium and iron sectors — for designation as Special Economic Zones, in a major policy position aimed at boosting mineral value addition, attracting investment and accelerating industrialisation.

The move means the selected mining areas will be developed into integrated industrial hubs where investors will enjoy incentives such as tax breaks, deregulation and dedicated infrastructure to process minerals locally instead of exporting them in raw form.

This is expected to increase export earnings, create jobs and reduce Zimbabwe’s reliance on exporting unprocessed minerals.

The proposal, which is set to be tabled before Cabinet in the coming weeks, is part of a broader industrial policy framework that will soon be launched by President Mnangagwa.

Industry and Commerce Minister Dr Mangaliso Ndlovu said an inter-ministerial committee has already completed drafting the concept, which now awaits Cabinet approval.

“We have identified between eight and 11 mines across the country, mainly in the iron and lithium sectors, that will be placed under Special Economic Zones,” said Dr Ndlovu in an interview last week.

“We created an inter-ministerial committee to work on the concept and we are now almost through.

“The proposal will be submitted to Cabinet in the next few weeks and will be announced once it has been approved.”

The planned SEZs come in the wake of Government’s recent ban on the export of raw lithium and other strategic minerals — a policy designed to force local beneficiation and ensure the country derives maximum value from its natural resources.

Speaking during a recent Question and Answer session in the National Assembly, Dr Ndlovu said the new industrial policy places strong emphasis on linking mining to manufacturing.

“For the first time, our industrial policy explicitly focuses on mineral value addition, manufacturing and industrialisation,” he said.

“This is a deliberate effort to ensure that our minerals contribute meaningfully to the growth of local industry. The ban on the export of raw lithium is part of this broader strategy to prioritise beneficiation.”

He said the establishment of SEZs around mineral-rich areas will anchor processing industries such as lithium battery manufacturing, steel production and other downstream industries, transforming mining from a purely extractive activity into a driver of industrial development.

“In the next two to three weeks, we will be announcing comprehensive measures around Special Economic Zones in mineral-intensive areas, which are designed to attract investment into processing and manufacturing,” he said.

Experts note that the proposed mining-based SEZs, particularly in lithium and iron-rich areas, represent a strategic shift from a resource extraction model to an industrialisation-driven economy.

The concept is designed to ensure that minerals are processed and beneficiated locally rather than exported in raw form.

Traditionally, Zimbabwe — like many resource-rich African countries — has exported unprocessed minerals, losing out on the higher value that comes with refining and manufacturing finished products.

By establishing SEZs around key mining sites, Government aims to anchor industrial activity directly at the source of raw materials.

In practical terms, the SEZs will function as designated industrial zones located near major lithium and iron ore deposits.

Within these zones, investors will be offered a range of incentives, including tax holidays, duty-free importation of machinery, simplified licencing procedures and guaranteed infrastructure support such as power, water and transport links.

These incentives are meant to reduce the cost of doing business and attract both local and foreign investors into mineral processing and manufacturing.

For lithium, which is in high global demand due to its use in electric vehicle batteries and renewable energy storage, the SEZ model could see Zimbabwe move up the value chain from exporting spodumene or lithium concentrate to producing lithium carbonate, lithium hydroxide and eventually battery components.

This would multiply export earnings several times over, as processed lithium products command significantly higher prices on the international market.

Beyond mining, Government is also rolling out plans to strengthen agro-industrialisation, with 15 agro-processing value chains currently under development.

“In our industrial policy, we have thoroughly examined various sectors, particularly agro-processing, in collaboration with the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development,” said Dr Ndlovu.

“We are developing 15 agro-value chains, each receiving dedicated attention, to ensure they grow and contribute significantly to overall industrial output.”

The policy thrust also includes reforms aimed at improving the business environment and product competitiveness.

Dr Ndlovu said Government has introduced a Regulatory Impact Assessment (RIA) framework to evaluate the cost and effectiveness of regulations before implementation.

“This ensures that every regulation is assessed for its impact on the economy and the cost of doing business,” he said.

“We will publish quarterly reports through the National Competitiveness Commission to enhance transparency and accountability.”

In addition, the Government is working on strengthening quality standards to ensure locally-produced goods can compete both domestically and on export markets.

“We are developing mandatory quality regulations for certain products to ensure that consumer goods meet required standards,” he said.

“This will enhance our capacity to produce competitive goods for both local consumption and export.”

The new industrial policy, which is expected to be launched in the coming weeks pending the President’s schedule, signals a shift towards a more integrated economic model — one that links mining, agriculture and manufacturing to drive sustainable growth.