Zimbabwe’s government has implemented policies to increase domestic processing of its mineral resources, particularly lithium, rather than exporting raw materials for refining elsewhere. The 2022 ban on unbeneficiated lithium ore exports has prompted over $1 billion in investment into the country’s lithium value chain, according to officials. Minister of Mines Polite Kambamura highlighted progress on the first lithium sulphate plant in Africa and outlined ambitions to eventually manufacture lithium batteries and solar panels domestically.
Large producers like Prospect Lithium Zimbabwe, owned by China’s Zhejiang Huayou Cobalt, are advancing beneficiation projects, with their lithium carbonate facility nearing completion. Policy supporters argue that processing minerals locally creates skilled jobs, strengthens supply chains, and allows Zimbabwe to retain greater income from its finite mineral resources. Public policy expert Tedious Ncube cited investments at operations like Arcadia Mine and Bikita Minerals as evidence that the policy attracts capital and expands the sector.
However, smaller mining operators report significant barriers to participation. Shelton Lucas of Naivo Mining, which operates chrome, antimony and tungsten projects, stated that smaller producers struggle to access affordable processing capacity and are forced to sell to local smelters at disadvantageous prices. He proposed establishing toll-smelting systems with shared public or industry-owned facilities available at transparent rates to prevent market concentration among large companies.
Economists identified substantial infrastructure challenges that could undermine the strategy’s success. Economist Chenayi Mutambasere cited power shortages, expensive financing, weak transport infrastructure, foreign exchange constraints and limited technology access as obstacles. She warned that implementing restrictions before establishing necessary support systems could drive mining operations underground and increase mineral leakage. Government officials stated the beneficiation policy extends beyond lithium to platinum group metals and is designed to ensure long-term economic benefits for future generations.
The debate reflects a broader question facing resource-rich nations: whether restricting raw exports can build inclusive domestic industries or risks concentrating opportunities among a few large players. Success will depend on whether processing expansion creates broader sector participation or establishes new barriers limiting smaller producers’ competitiveness.
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