The Zimbabwean government has adjusted its mining growth projections for 2024, reducing the forecast from 7.6% to 5.2% due to lower-than-expected gold production. This revision was announced by Minister of Finance and Investment Promotion, Prof. Mthuli Ncube, during the 2024 Midterm Budget and Economic Review themed “Consolidating Economic Transformation.”
Prof. Ncube cited the shortfall in gold output as the primary reason for the downgrade but noted that the mining sector remains resilient. Increased production of lithium, platinum group metals (PGMs), nickel, and chrome has helped mitigate the impact of declining commodity prices.
Despite these gains, the mining industry faces significant challenges, including frequent electricity outages and high operational costs. The current electricity tariff stands at US$0.14 per kWh, double the industry’s preferred rate of US$0.07 per kWh, alongside a high 15% VAT. However, the recent removal of VAT on gold sales is expected to positively impact production by providing more favorable pricing for miners.
