By Nothando Mathe
HARARE — Zimbabwe’s vast reserves of critical minerals, including lithium, platinum and rare earth elements, position the country as a potential leader in the global shift to renewable energy, according to a new report by the Southern Africa Resource Watch (SARW). However, the report warns that policy gaps, governance challenges and funding shortages could hinder the country’s ability to capitalize on its natural resources.
The report, titled Critical Minerals and Renewable Energy Value Chains in Zimbabwe: A Study of Actors and Initiatives, highlights Zimbabwe’s role in supplying minerals essential for manufacturing electric vehicles, solar panels, wind turbines and energy storage systems. Zimbabwe is home to the world’s fifth-largest lithium reserves, attracting significant foreign investment, particularly from Chinese companies. In 2023, the government banned the export of raw lithium to encourage local processing and value addition, aiming to establish the country as a regional hub for lithium-ion battery production.
Despite these ambitions, the report notes that progress toward local battery manufacturing remains limited. Zimbabwe also lacks a comprehensive Critical Minerals Strategy, which the report says is crucial for guiding sustainable mining practices and ensuring that communities benefit from the exploitation of these resources.
Zimbabwe’s energy mix is currently dominated by coal and hydropower, but the country is increasingly investing in renewable energy projects. Solar energy has seen significant growth, with several independent power producers licensed to generate electricity for industrial and commercial use. Notable projects include a planned 1,000-megawatt floating solar plant on the Kariba Dam and a 200-megawatt wind power project near Plumtree.
However, the renewable energy sector faces significant hurdles, including funding shortages, outdated infrastructure and regulatory bottlenecks. The report calls for stronger procurement regulations and greater transparency to attract foreign investment and ensure the successful implementation of renewable energy initiatives.
The report identifies a lack of continuity and technical capacity in Zimbabwe’s policy development as a major barrier to progress. Efforts to create a national minerals development policy and a lithium-specific strategy were abandoned due to the departure of key personnel, leaving the Ministry of Mines and Mining Development without the expertise needed to formulate effective policies.
Additionally, the absence of clear local content policies and guidelines on critical minerals has hindered the development of local value chains. The report urges the government to adopt stringent environmental, social and governance (ESG) standards to ensure responsible and sustainable mining practices.
Zimbabwe’s green transition is further complicated by its high levels of public debt, estimated at $18 billion. The report recommends leveraging domestic resources, such as the Mutapa Sovereign Wealth Fund, and exploring innovative financing mechanisms like green bonds to fund renewable energy projects. It also emphasizes the need to address illicit financial flows and revenue leakages in the mining sector to ensure that revenues from critical minerals support sustainable development.
The report stresses the importance of a just energy transition that prioritizes energy access for all Zimbabweans, particularly in rural areas. It calls for inclusive growth, environmental sustainability and energy security to ensure that the shift toward renewable energy does not exacerbate social inequalities.
The report concludes with several recommendations to help Zimbabwe harness its mineral wealth for sustainable development:
Conduct comprehensive geological surveys to close the data gap on critical minerals. Develop a national Critical Minerals Strategy and value chain framework. Strengthen resource governance and transparency to attract responsible investment. Invest in human resources and skills development to build a capable workforce.
Enhance regional integration and collaboration to leverage shared resources and expertise.
“Zimbabwe has the potential to become a key player in the global energy transition,” said Dr. Claude Kabemba, one of the report’s authors. “But this will require significant investment in infrastructure, human resources and technology, as well as a commitment to good governance and sustainable practices.”
The full report is available at www.sarwatch.co.za.
