President Emmerson Mnangagwa is proving that his determination to drive investment into Zimbabwe will not override smart judgements and decision making after announcing he will drop the requirement for mining companies to list on the local stock exchange.
Zimbabwe is currently reviewing its Mining Act and this requirement, which Emmerson initially indicated he would incorporate, has been dropped entirely. This is according to Zimbabwe foreign minister Sibusiso Moyo.
The country’s Chamber of Mines, had indicated its concern over local listings noting that the exchange might not be deep and liquid enough for companies to raise capital.
Zimbabwe will finalise amendments to its mines act in the next few months and is determined to boost investment into the country as a result.
Mining is one of the most crucial industries in Zimbabwe but could be so much bigger than it is. There are just a handful of significant mining companies in the country which includes Zimplats, Caledonia Mining, Anglo American Platinum and Metallon.
According to high level individuals in government, all minerals-extraction operations excluding platinum and diamonds could be 100% foreign owned. The platinum and diamond sectors must have 51% local ownership, but this can also be altered on a case by case scenario.
Also, any company investing US$100 million or more in the mineral sector could negotiate tax rates, royalties and ownership structures directly with the government.