Mining Indaba to be held in Harare at the month-end

Published: 04 September 2013

THE mining industry will continue leading Zimbabwe's economic performance this year if challenges facing the sector are addressed, Utho Capital chief executive Mrs Sheila Galloway has said.

Utho Capital are the organisers of the Zimbabwe Mining Indaba to be held at the end of the month in Harare.

Responding to written questions, she said the country's mining sector in the past five years has been slowly recovering and continued to lead economic performance.

"Zimbabwe's mining sector has continued to be the lead in economic performance, contributing an estimated 16 percent to the Gross Domestic Product in 2012, up from 13 percent in 2011. The sector also continued to lead in export earnings, rising to $2 billion in 2012, from $1,8 billion in 2011. The major drivers of this growth in export earnings were diamonds, platinum and gold. This year, looks no different, assuming the current momentum is maintained.

"Militating against higher growth rates, however, is the unavailability of medium to long-term credit facilities for working capital and recapitalisation requirements, as well as perennial power shortages. These enablers, if they remain unresolved, will continue to be major impediments to potential growth targets," she said.

She said Zimbabwe had massive natural resource potential. Through the minerals policy, she expressed optimism that the country would be able to explore ways of attracting investment as well as addressing challenges affecting the mining sector.

The draft minerals policy proposes to establish an internationally competitive, stable and conducive business climate to attract and sustain foreign and local investment, while ensuring equitable distribution of benefits from mining activities to meet present and future needs.

It further proposes to overhaul the Mines and Minerals Act and introduce new minerals development legislation that will maximise the impact of mineral assets on growth and development.

Mrs Galloway said the development of a mineral policy was critical to ensure transparency and certainty, particularly given the increasing role of the mining sector in supporting the socio-economic growth objectives of the Government, job creation, and revenue and export earnings.

"For the future of the mining sector, the Government of Zimbabwe must come up with policy initiatives and reforms that provide win-win solutions for both the investor and the people of Zimbabwe. The Government has a duty and obligation to create a conducive and enabling economic environment and business climate."

Mrs Galloway said her organisation would continue to market Zimbabwe internationally through facilitating this yearly conference as well as continuously reminding the international community of the potential the country has.

Meanwhile, preparations for this year's mining indaba were on course with some of the international delegates having confirmed participation.
- chronicle