The performance of the mining sector is what gives Ncube the most cause for optimism. Zimbabwe has substantial reserves of diamonds, gold, the platinum group of metals and holds one of the continent’s biggest reserves of lithium – an essential component in the manufacture of batteries. With the world inexorably moving towards green energy, including electric car use, the demand for lithium has been soaring.
The government says that when most of the new and old mines are in full operation later this year, “We should be able to clock US$12bn per year. This growth from about US$3bn [when it came into office in 2018] to US$12bn demonstrates the fact that we have a really good mining sector, and that foreign companies are feeling safe to invest in Zimbabwe.”
In December, the government banned the export of raw lithium. “Beneficiating lithium is a good thing,” Prof. Ncube told African Banker. “We are saying that, you cannot export raw unprocessed lithium but if you build a concentrator, it can be exported as a lithium concentrate. Better still, if you build a lithium battery manufacturing plant, hallelujah!”
He said that within weeks, they had received offers from companies willing to set up concentrators and manufacturing plants.
But the economy is not out of the woods. The legal tender (composed of a combination of US and newly introduced Zim dollars plus the South African rand, the Botswana pula and a gold-backed digital currency) remains volatile. Although inflation has been battened down from 285% last year to around 90%, it is still a heavy burden to bear for most households.
Prof. Ncube said that after hitting a growth rate of 8.5% in 2021, he expects growth to average 5% over the next five years. But the first order of business, he agrees, is to restructure Zimbabwe’s massive debts with the international financial institutions (IFIs). “We have started a process working with the creditors – the IFIs as well as the Paris Club partners,” he told African Banker. He expects agreements to conclude over the next 18 months.
Interestingly, President Mnangagwa accepted an invitation to attend the UK’s King Charles III coronation in May – the first time in over two decades that the ice was broken. Was this the opening of the door to Zimbabwe to resume its place in the family of nations?
But first, a closely contested election must be fought and seen to be fought cleanly and fairly. At stake is the future of Zimbabwe.
By Anver Versi, editor of New African magazine
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