According to the State of the Mining Industry Survey, Zimbabwe’s mining sector is forecasting a revenue increase, with an expected 2% rise in 2024 and a further 10% boost in 2025, potentially reaching US$6 billion due to improved production and recovering commodity prices. However, nearly 40% of mining companies express concerns about declining profitability, citing rising operational costs and exchange rate losses as major challenges.
Electricity tariffs are projected to rise by 8%, with current rates of USc14.21 per kilowatt-hour being among the highest in the region. Miners are advocating for reductions to below USc13/kWh to remain competitive. Additionally, mandatory currency surrenders exacerbate financial strain due to discrepancies between official and parallel market exchange rates.
Labour costs are also set to increase by 4% in 2025, pressured by inflation and union demands for full US dollar payments.
