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GOVERNMENT has set a new US$40 billion by 2030 target for the mining sector, a Cabinet Minister has said.

This comes as the industry recorded US$20,5 billion in exports over the past five years.

The growth of the sector has been largely spurred by an improved investment environment, which, according to the Ministry of Mining and Mining Development, contributes 50 percent of the foreign direct investments.

At least 45 000 jobs have been created in the sector over the past five years.

In an interview, Mines and Mining Development Minister Soda Zhemu said:

“A cumulative of US$20,5 billion was realised in mineral exports since 2018.

“Key minerals that led to the attainment of the target include gold, platinum group of metals, high carbon ferrochrome, diamonds, lithium, coal and coke,” Minister Zhemu said.

“Going forward and in line with Vision 2030, the economic development will be largely underpinned by activities in Ministry of Mines and Mining Development such as exploration, opening of new mines, resuscitation of old mines and enhancing the mines that are currently operating.

“Our vision by 2030 is to have a US$40 billion mining industry by 2030.

“The mining sector is a key player in the country’s economic development. The sector contributes more than 60 percent of Zimbabwe’s export receipts, attracts more than 50 percent of foreign direct investment (FDI), contributes about 13 percent to GDP (gross domestic product) and generates significant employment.”

He added:

“The mining sector employed a total of 106 151 direct employments, as at the end of 2022.

“There has been a significant increase in the number of people employed in the sector from a baseline of 77 799 at the conception of NDS1.

“Most of the investment has come from China, South Africa and European countries.”

Economic analyst Mr Persistence Gwanyanya said the increase in mineral exports and investor confidence in the sector has been as a result of a conducive business environment ushered in by Government.

“Government has implemented a number of measures in the economy including amending legislations such as the Indigenisation and Economic Empowerment Act and the establishment of (ZIDA) Zimbabwe Investment Development Agency,” he said.

“Government has also put in place various monetary policies aiming to stabilise the economy, all this contributes to investor confidence resulting in increased investments.”

Mr Gwanyanya said the country should continue to take advantage of the improved mineral prices prevailing across the globe.

@SUNDAY MAIL