Zimbabwe’s government is implementing a resource nationalism strategy, aiming to acquire a 26% stake in both new and existing mining projects. This move reflects a broader trend across Africa, where countries are seeking greater control and profit from their natural resources.
According to Pfungwa Kunaka, Zimbabwe’s Secretary for Mines, the government will hold a 26% free carry interest in all new mining ventures. For existing operations, the government intends to negotiate with current operators to acquire a similar stake. This ambitious plan seeks to significantly increase the government’s participation in the mining sector, a key driver of the Zimbabwean economy.
While details regarding the implementation and financing of this initiative remain scarce, Kunaka acknowledged that achieving this goal will require extensive negotiations with existing mining companies. He emphasized the need for a careful approach, recognizing that existing agreements were made under different frameworks and cannot be unilaterally altered. The policy is expected to be implemented starting next year, though the specific criteria for determining which mining assets will be targeted remain undisclosed. Kunaka stated that further details will be released in due course.
This move towards greater state involvement in the mining sector aligns with a growing trend of resource nationalism across the African continent. Countries are increasingly asserting their rights to benefit more substantially from their mineral wealth, often citing historical imbalances and the need for greater economic sovereignty. Zimbabwe is a significant producer of various minerals, including gold, platinum, lithium, and chrome, with operations run by companies such as Zimplats Holdings Ltd., Anglo American Platinum Ltd.’s Unki mine, and RioZim Ltd.
The government’s current 15% free carry shareholding in platinum miner Karo Resources serves as a precedent for this new policy. The planned expansion to a 26% stake across a broader range of mining projects represents a significant escalation of the government’s resource nationalism strategy. The success of this initiative hinges on the government’s ability to negotiate effectively with existing operators while also attracting new investment in the sector. The long-term impact on Zimbabwe’s mining industry and overall economy remains to be seen.
