Staff Reporter

In a significant development for Zimbabwe's mining industry, a Cyprus-based platinum mining company, Tharisa Private Limited, has announced a substantial increase in its stake in Karo Mining Holdings PLC from 70 to 75 percent ownership stake.

A source privy to the details said that Tharisa’s move to escalate its investment in Karo Mining Holdings PLC comes amidst a backdrop of optimistic projections for Zimbabwe's economy, which has weathered years of western sanctions since 2002.

“Despite past challenges, the increased investment underscores a growing belief in Zimbabwe's capacity for growth and development,” said the source.

The source said that Tharisa's total subsidiary investment in Karo Mining Holdings PLC now stands at an impressive US$135.3 million.

The source revealed that Karo Mining recently secured an additional US$65 million through a rights offer, further strengthening its financial standing.

“This injection of capital is poised to catalyse growth and development within the mining sector, contributing to Zimbabwe's broader economic objectives,” added the source.

Economist, Gilbert Chidzere, said that Tharisa's decision to expand its investments in Zimbabwe's mining sector comes in the wake of challenges, including weaker platinum group metals (PGMs) prices and global economic uncertainty.

“Despite these headwinds, Tharisa's commitment suggests a profound confidence in the market's resilience and potential for recovery. Zimbabwe's ambitious goal of achieving a US$40 billion mining industry by 2030 aligns with Tharisa's vision, further solidifying its decision to deepen its involvement in the country's mining landscape,” said Chidzere.

Chidzere added that Tharisa's decision to bolster its stake in Karo Mining Holdings PLC represents more than just a financial transaction, as it symbolises a resounding vote of confidence in Zimbabwe's mining sector and broader economic prospects.

“As Zimbabwe continues to position itself as an attractive destination for investment, Tharisa's expanded commitment serves as a testament to the country's potential for sustained growth and development,” added Chidzere.

Meanwhile, the surge in investment in the country bodes well with President Mnangagwa’s recent engagements in Dubai's DMCC, where bilateral trade between the United Arab Emirates (UAE) and Zimbabwe experienced significant growth, surging from US$900 million in 2019 to over US$3 billion in 2023.