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ZIDA Gets US$7 Billion Mining Investment Deal

ZIDA gets US$7 billion mining investment deal

The Zimbabwe Investment and Development Agency (ZIDA) has received a mining investment deal worth a projected US$6,94 billion from Ajako United (Pvt) Ltd for mining, processing and trading of minerals.

In a major boost for the sector, ZIDA also received another investment deal worth a projected US$1,4 billion for mining and processing of gold by Innermost Resources Zimbabwe (Pvt) Ltd.

The two mining investments are expected to increase Zimbabwe’s gold production from the current 200 tonnes to 300 tonnes per year by 2025.

ZIDA revealed this in its 2023 Quarter Four report which also revealed that the mining sector had attracted the most interest with 63 licences having been issued.

The investment agency said in the fourth quarter, the mining sector accounted for 76 percent of all licences that were issued.

“The mining sector continued to draw the most investment, both in terms of number and projected investment value.

“In Q4 2023, 76 percent of the projected investment value for all licences were issued in the mining sector. The two largest investments being, Ajako United (Pvt) Ltd with a project investment value of US$6,94 billion for mining, processing and trading of gold and other minerals including lithium, manganese and copper from its base in Harare and Innermost Resources Zimbabwe (Pvt) Ltd, US$1,4 billion towards mining and processing of gold in Penhalonga, Turk Mine and Kwekwe.

“The projects are expected to eventually contribute to increasing the country’s gold production from the current 200 tonnes to 300 tonnes per year by 2025,” read the report.

Zimbabwe also managed to attract increased numbers of foreign investors, in line with the Second Republic’s Zimbabwe is Open for Business thrust.

Making up the top five was South Africa US$1,7 billion, Botswana US$1,4 billion, the United Arab Emirates US$703 million, the Netherlands US$234 million and China US$165 million.

Chinese investors had 81 licences issued, India 15, Zimbabwe 7, South Africa 7 and Mauritius 6.

“Year-to-date 2023 the Agency managed to attract investors from 47 countries compared to Year-to-date 2022, where licences were issued to investors from 33 countries including Zimbabwe.

“During both periods, investors from China continue to dominate by having the highest number of investors with mining being their most preferred sector followed by the manufacturing sector. However, China and Japan contributed the highest projected investment values in the 2023,” said the report.

ZIDA’s chief executive officer Mr Tafadzwa Chinamo said the agency was committed to promoting the country as an investment destination of choice.

“Furthermore, the Agency continued to foster strong partnerships with key stakeholders, to promote investment processes and ease of doing business. Two collaboration agreements were signed with Nedbank and Ecobank. These collaborations will play a vital role in promoting Zimbabwe as an attractive investment destination, and facilitating both foreign and domestic direct investments.

“Looking ahead, the Agency remains committed to driving investments and fostering growth. Embracing innovation and technology will be central to our success in the future.

We recognise the importance of sustainable developments through responsible investments, hence a renewed emphasis to attract socially responsible investors in line with regional and global trends,” he said.

ZiMetro

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