By Rungano Dzikira
Miners’ apex body, Chamber of Mines of Zimbabwe (CoMZ) says the mining sector contribution to the economy is set for a rebound as power supply has steadily improved over the last month.
Speaking at a budget submissions event in the capital yesterday, CoMZ president, Isaac Kwesu said Government’s US$12 billion contribution target for the mining sector to the Gross Domestic Product (GDP) is achievable as power supply continues to stabilise.
“Power supply has improved greatly over the last month. We are confident that the set contribution target to GDP is attainable.
“Our membership hopes power supply continues to stabilise as we seek to re-enter the bullion market (gold) as well as increase our commodities export receipts,” he said.
Kwesu also told delegates at the conference that miners were also facing challenges in accessing working capital. “Working capital is expensive and it is difficult to access it.”
The miners’ high praise for government initiatives to stabilise power supply comes at the backdrop of complaints by domestic power users over the price of electricity.
However, Kwesu said the increase of power supply in the sector spelt a positive outlook to treasury.
“Following difficult months of power outages and load shortages that have affected miners, it is important that we focus on the positives. We are thankful that supply has increased and we can now work and raise production levels,” he said.
Zimbabwe’s economy is modelled around mining and agriculture and Government has indicated that such issues of power and the cost of borrowing need to be dealt with.
“As government, we would want a thriving mining sector as well as a thriving manufacturing sector. Such budget submissions as this one also helps to keep government alive to issues bedevilling miners and farmers,” he said.
The CoMZ is a board which advocates for Government policy and legislation that promote growth and sustainability of the mining sector, working with Government to identify and agree on key areas for engagement.
