A 2013 strategic study conducted by the Zimbabwe Policy Analysis and Research Unit (ZEPARU), a semi-autonomous policy think tank established and supported by the African capacity Building Foundation, the government of Zimbabwe and other development partners has led the Zimbabwean government to initiate a review of the country’s Mines and Minerals Act.
ZEPARU’s study assesses the current mining policy and its implication for the sector. It specifically focuses on reviewing the state of the mining sector in Zimbabwe and on providing a comprehensive analysis as well as recommendations on how the country’s mining policy can be enhanced to ensure effective contribution of the sector to the development of the country.
The study also aims to provide the basis to transform the industry into an engine of economic growth and job and wealth creation. It looks at ways to strengthen the value chain of the mining sector in order to maximize the benefits of exploiting mineral resources. Moreover, the study aims to increase public awareness on how the nation’s resources are being exploited by mining companies for the benefit of Zimbabweans.
Amending the Act
As a result of ZEPARU’s study, the government has developed a draft minerals policy in 2013 and the principles for amendments of the Mines and Minerals Act have been approved. The bill is expected to go through parliamentary processes in 2015.
The government has also renewed its efforts to revitalize the Zimbabwe Mining Revenue Transparency Initiative, which was launched in 2011 to improve transparency and accountability in the mining sector. Furthermore, the government has committed US$ 500,000 in support of the initial operation of the Sovereign Wealth Fund which was first mentioned in the 2014 national budget statement.
And in line with the recommendation for financing small scale miners proposed in the study, the government has entered into a US$100m loan agreement with a Chinese company to provide small scale mining equipment to entrepreneurs on credit. Today, most small scale miners now have the requisite equipment for use in extracting mineral resources. This in turn is said to have boosted their revenue and created employment opportunities.
In addition, the study also generated a lot of interest among development partners, prompting the African Development Bank to provide funding for in-depth work on some of the areas and issues covered in the study.
The current Mines and Minerals Act came into force long before the independence in 1980. Since then the act had not seen any significant changes to align it with current needs and realities.
