A change in presidency is on the cards – despite Robert Mugabe’s reluctance to stand down. A new president, after 30 years, could be just what the country needs, especially if that president is a more astute business man.
Zimbabwe’s mining industry, although untainted by recent activities in the country, is desperate for a leadership change that will bring about an investment incentive change for the sector.
51% ownership by local Zimbabweans of any mining operation is alone enough to detract investment.
“The world’s mining industry couldn’t get into Zimbabwe quick enough when Mugabe took over in 1980. The world was at the very peak of the greatest commodity price boom it had ‘ever’ seen. Rhodesia – now Zimbabwe was SO WELL manned with great infrastructure and GREAT institutions. It had most minerals that South Africa did – and they were all shallow – well known – and barely exploited,” says Peter Major, Cadiz Corporate Solutions mining director.
So what happened?
Commodity prices began falling – and they continued falling – for most of the next two decades. The economy and institutions held up for a while, but after two years were all under siege. This then continued for more than three decades.
Zimbabwe is an excellent example of how politics can destroy a country’s mining industry (South Africa be ware). The only positive aspect left in Zimbabwe is its ore bodies, Major states.
“But institutions are shattered. People are totally brain-washed and confused with propaganda and nonsense. Infrastructure has been destroyed almost completely. There is huge debt and huge wariness and distrust amongst everyone – locals and foreigners alike.”
The Generals have been running /plundering Zimbabwe for 37 years. They are all totally corrupt and ruthless. The question is, will Emmerson Mnangagwa, be different?
“There are 200 countries to risk my money in right now. And for now, Zimbabwe still has a lot of proving to do. And commodities have had the big run – and their smaller run – and now look more to fall – then rise again – for some time.”