Trymore Tagwirei

Zimbabwe’s mining industry is regaining momentum in 2025, with capacity utilisation and business confidence improving steadily despite persistent economic headwinds, according to the Zimbabwe National Statistics Agency (Zimstat).

Zimstat’s latest Business Tendency Survey Report shows that capacity utilisation in the mining sector rose to 55.4 percent in the first quarter of 2025, up from 52.7 percent recorded in the last quarter of 2024 — signalling a gradual recovery in production efficiency.

The report also revealed that the Mining Confidence Index improved to -0.4 in the first quarter of 2025 from -4.9 previously, reflecting growing optimism among mining companies about future business prospects.

“The improvement in both capacity utilisation and business confidence highlights a steady rebound in operational efficiency within the sector despite ongoing economic challenges,” Zimstat noted.

According to the report, 32.6 percent of mining respondents expressed optimism about the general business climate during the first quarter, compared to 8.1 percent who were pessimistic — an indication that more firms see opportunities for growth in the current environment.

Production levels were largely stable, with 52.3 percent of mining companies reporting no change in output, while 12.8 percent recorded an increase. Expectations for the second quarter are brighter, with 55.8 percent of respondents anticipating higher production levels.

Employment also remained largely stable during the period. About 74.4 percent of mining firms maintained their workforce, while 14 percent increased employment. The balance of opinion for total employment improved to 2.3 percentage points, up from -3.6 in the previous quarter.

Zimstat reported that around 70 percent of respondents viewed their order books as normal for the season, suggesting stable market demand despite tight liquidity conditions. The balance of opinion for order books stood at -27.9 percentage points.

Stock levels were also steady, with 5.8 percent of firms reporting finished goods above normal, and 69.8 percent describing raw material stocks as normal. Most companies expect selling prices to remain unchanged in the second quarter of 2025.

The Zimbabwe Investment and Development Agency (ZIDA) also reported a notable increase in investment inflows, registering US$651.17 million in the first quarter of 2025, up from US$434.25million in the previous quarter.

Despite these gains, the mining sector continues to face major challenges. Zimstat highlighted cash flow difficulties, electricity shortages, and economic uncertainty as the top three constraints to production.

“These persistent challenges continue to weigh on output growth and profitability across the mining sector,” the agency noted.

Analysts believe the latest data paints a cautiously optimistic picture for the sector. The rise in capacity utilisation and confidence levels suggests a gradual strengthening of operations as mining firms adjust to Zimbabwe’s evolving economic landscape.

“The mining sector remains one of Zimbabwe’s leading foreign currency earners. With improved stability and continued reforms, the industry is poised for sustained growth through 2025,” the report said.

Minister of Mines and Mining Development Winston Chitando said the sector continues to play a vital role in driving Zimbabwe’s economic growth.

“President Emmerson Mnangagwa set the US$12 billion mining sector target by 2023, and that immediately spurred reforms to attract new investors. We have since witnessed a growing number of foreign companies entering key sub-sectors, demonstrating confidence in our reforms,” he said.