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Zimbabwe can secure its place among Africa’s premier mining destinations if it maintains a predictable regulatory environment and resists the temptation of short-term tax grabs, according to a regional industry leader.
Abundant geological reserves are no longer enough to guarantee economic success in an increasingly competitive global market, Kenneth Ashigbey, Chief Executive Officer of the Ghana Chamber of Mines, said at a gold symposium in Victoria Falls. Speaking to delegates at the event, which ran alongside the Chamber of Mines of Zimbabwe Annual Mining Conference, Ashigbey emphasized that capital allocation depends heavily on long-term structural stability.
“Zimbabwe has an opportunity today to become one of Africa’s most important mining jurisdictions,” Ashigbey said. “The challenge is not geology. It’s strategy and policy alignment. The challenge is creating confidence architectures that convert mineral potential into transformational cash flows.”
Long-Term Horizons
The push for structural consistency comes as Harare seeks to scale up gold production the country’s largest source of foreign currency earnings to capitalize on robust global demand and record bullion prices. Mining companies operating in the southern African nation have frequently complained that ad-hoc regulatory shifts and volatile currency laws hamper their ability to plan or fund projects, which typically require heavy upfront capital and decades to deliver returns.
Ashigbey praised recent fiscal adjustments by Zimbabwean authorities, pointing to revisions in state royalty proposals and a lifting of windfall tax thresholds as evidence that policymakers are shifting toward a more collaborative approach.
“I commend the government of Zimbabwe for recent policy recalibrations, particularly the revision of the royalty proposal and raising of the windfall tax thresholds,” Ashigbey said. “These decisions are significant. They send important government signals to investors, both local and foreign. They reinforce predictability. They demonstrate that policymakers are listening.”
Avoiding the ‘Budget Cycle’ Trap
By moderating immediate fiscal demands, Zimbabwe is taking a more strategic route that could ultimately curb illicit leakages and bolster the formal economy, Ashigbey noted. Mining policies tailored narrowly to meet immediate fiscal deficits often choke off the very investments needed to sustain long-term state revenues.
“Mining policy must never be designed for only the next budget cycle. It must be designed for the next generation,” Ashigbey said. “The lesson for Zimbabwe and indeed all African countries is simple. Mining policy regulation and fiscal administration must be competitive, predictable and aligned with long-term national priorities, not short-term revenue pressures.”
Beyond tax rates, the key variables driving international capital include institutional transparency and the strict enforcement of legal contracts. “Capital goes to where policy credibility exists. Capital goes where contracts are respected. Capital goes to where institutions function,” he added. “That’s why governance matters, and good governance is not anti-business.”
Addressing local ownership debates a historically sensitive flashpoint for foreign investors in Zimbabwe Ashigbey argued that indigenization mandates do not have to crowd out foreign direct investment. Instead, a successful framework should blend diverse funding streams to maximize local impact.
“Indigenisation and multinational partnerships are not contradictions. They can co-exist,” Ashigbey said. “Africa and Zimbabwean ownership must strive alongside global investments. Zimbabwe can attract the East. Zimbabwe can attract the West. Zimbabwe must also deliberately attract African and Zimbabwean capital.”
