November 19, 2017

Zimbabwe minister tells mining companies to retain 75% of revenue locally

Chidhakwa

There is massive capital flight from the mining sector which has resulted in less money being invested locally. And to stem this tide the Zimbabwe’s mines minister, Walter Chidhakwa, has suggested that mining companies have to retain 75% of their revenue locally, which should be channelled towards wages, taxes and community share ownership schemes.

According to Fin24 Wire, Chidhakwa bemoaned: “Government is concerned that that only (about) 5% of goods (for the mining industry) are manufactured locally. The mining sector must strategize on how local companies can be capacitated to produce locally.”

Zimbabwe’s mines minister said in his address during a meeting which was held at Elephant Hills Resort in the tourism hub of Victoria Falls that drew prominent mining executives and the Zimbabwe Chamber of Mines.

The meeting tackled several topical issues affecting mining operations. Priorities on the agenda were softer commodity price and a tough business atmosphere. By the time the meeting closed, the government and mining companies had failed to reach a consensus on a number of issues, mainly policy inconsistencies (indigenisation policy was particularly singled out), ease of doing business and other macroeconomic issues.

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