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PGMs Generate US$2.1 Billion for Zimbabwe in 2023

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PGMs Generate US$2.1 Billion for Zimbabwe in 2023

The Platinum Group Metals (PGMs) industry continued to be a vital pillar of Zimbabwe’s economy, contributing US$2.1 billion in export revenue last year.

Despite facing challenges from depressed global market prices, the sector’s performance underscored its significance, according to Mines and Mining Development Minister Winston Chitando.

PGMs are Zimbabwe’s second largest export after gold, with an anticipated revenue of US$3 billion for 2023. Combined, platinum and gold account for over half of the country’s export earnings, while the mining sector overall constitutes more than 75 percent of Zimbabwe’s export value.

Speaking at a PGMs symposium in Victoria Falls, Minister Chitando emphasized the sector’s crucial role in driving economic growth. Zimbabwe, holding the third largest PGMs deposits globally after South Africa and Russia, sees significant potential in this industry. Unlocking this potential involves addressing key issues such as promoting PGMs’ role in the energy transition, financing domestic refinery construction, and implementing a strategic import policy.

“The PGMs sector remains a vital contributor to our national economy, generating US$2.1 billion in 2023. PGMs account for approximately 25 percent of our national exports, underscoring their importance to our economic prosperity,” stated Minister Chitando.

He noted the dynamic and challenging landscape of PGMs mining, highlighting a substantial 40 percent decline in palladium prices. This price volatility reflects the complex interplay of global forces, including the geopolitical ramifications of the Russia-Ukraine conflict, which has significantly impacted the PGMs market.

Despite these challenges, Minister Chitando expressed confidence that local PGMs producers would continue to increase production to counter revenue losses from the downturn in commodity prices. Notably, Zimbabwe’s platinum production surged to 507,000 ounces last year, a six percent increase from 2022, driven by investments enhancing operational stability.

Zimbabwe hosts three active PGMs producers: Zimplats and Unki Mine, majority-owned by South African companies Implats and Anglo-American respectively, and Mimosa, co-owned by Sibanye Stillwaters and Implats.

Minister Chitando urged local platinum producers to move beyond being price takers in the global market by investing in exploration, mine efficiency, and value addition. He stressed the importance of collaboration with research institutions to develop innovative extraction and processing techniques, enhancing the competitive edge of Zimbabwe’s PGMs sector.

He also highlighted the impact of technological advancements and recycling on stabilizing prices, noting that platinum is a key component in electrolysers for green hydrogen production, a clean and sustainable energy source with significant potential.

As the world transitions to a low-carbon future, PGMs are expected to remain central to sustainable energy solutions. Zimbabwe has the opportunity to position itself as a key player in the clean energy revolution, attracting investments and creating new opportunities for its citizens.

Minister Chitando also expressed satisfaction with Zimplats’ significant investments to enhance its processing capacity. Under a US$1.8 billion capital expenditure plan, Zimplats is setting up integrated projects, including new mines, smelter expansion, an additional concentrator, a base metal refinery, and a 110MW solar power plant.

“The construction of additional smelters and the refurbishment of the base metal refinery will enable the company to process its materials domestically, further boosting our local mining industry,” he said. He also mentioned an agreement among PGMs producers to use excess capacity at Zimplats for toll treatment, fostering collaboration within the sector.

“We welcome collaboration with international investors and financial institutions who share our vision for a sustainable and prosperous Zimbabwe,” Minister Chitando concluded.

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Zim Afro T10 Tournament Showcases Zimbabwe to Global Audience, Says Mnangagwa

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Harare, Zimbabwe | President Emmerson Mnangagwa has commended the Zimbabwean diaspora for playing a pivotal role in attracting foreign investors to the country, aligning with the ‘Zimbabwe is open for business’ initiative.

This policy facilitates the influx of much-needed capital, strengthening the nation’s economy.

The President expressed his appreciation during his keynote speech at the closing ceremony of the second edition of the Zim Afro T10 cricket tournament, held at Harare Sports Club.

“I extend my heartfelt gratitude to our diaspora community for their tireless efforts in convincing investors to bring their resources to Zimbabwe, particularly in the realm of cricket,” said Mnangagwa.

He emphasized the importance of inclusivity, stating, “Together, we will ensure that no one and no place is left behind, especially in sports.”

Looking ahead, Mnangagwa urged the Ministry of Sport, Recreation, Arts and Culture, along with Zimbabwe Cricket and other stakeholders, to channel efforts toward grassroots development, ensuring that opportunities reach village level.

The President was among a large audience witnessing the final match. He was accompanied by UAE billionaire Shaji Ul Mulk, founder and chairman of T Ten Global Sports, Home Affairs Minister Kazembe Kazembe, and award-winning diasporan investor Dr. Paul Tungwarara, closely following the game.

In April 2022, under Mnangagwa’s leadership, Zimbabwe’s Second Republic approved projects worth USD 1 billion from Mulk Holdings. Dr. Tungwarara initially brought Mulk into the country, and Mulk has been instrumental in organizing the T10 tournament under the banner of T Ten Global Sports.

President Mnangagwa also highlighted the tournament’s vast international reach, noting that it is broadcast live in 100 countries with an audience exceeding 400 million viewers, providing significant global exposure for Zimbabwe.

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$50,000 Bribe and High-Profile Collusion: Harare Town Clerk’s Release Sparks Outrage

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The recent release of Harare’s Town Clerk has uncovered a web of corruption involving high-ranking officials and legal professionals, exposing the ongoing corruption undermining the city’s governance.

At the center of this scandal is the law firm Guwuriro and Associates, which played a key role in the Town Clerk’s release. The firm has a history of manipulating legal processes for their clients’ benefit, often at the expense of justice and transparency.

Vongai Guwuriro, the Acting Chief Magistrate and a key figure in securing favorable outcomes for her husband’s firm, has raised further concerns about judicial integrity. Guwuriro previously attempted to grant bail to the same Town Clerk, who had secured bail under suspicious circumstances in an earlier case, setting a troubling precedent.

Court records reveal that Town Clerk Chisango, as the Accounting Officer, fraudulently awarded a street lighting contract to Juluka after reducing the budget from $45 million to $15 million, narrowing down the bidders from four to just two. Despite these manipulations, the procurement authority PRAZ refused to endorse the deal. Chisango’s claim of ignorance, along with his lawyers’ defense, is seen as a weak excuse for his actions.

Key figures in the Town Clerk’s release include Public Prosecutor Mapfuwa and legal partner Vhiriri, who worked together to secure the controversial bail despite charges of criminal abuse of office, mismanagement, and embezzlement. Local councillor Abdurrahman Sapa (“Abdul”) also played a crucial role by leveraging his connections with the judiciary to facilitate the Town Clerk’s return to duty, in violation of bail conditions.

Reports suggest that a $50,000 bribe was paid to ensure the Town Clerk’s release, implicating several individuals in the bribery scheme. The lenient bail conditions, which only require the Town Clerk to report to the police once a month, have sparked outrage, as they allow him to resume work, potentially intimidating witnesses in his ongoing cases.

The preferential treatment given to the Town Clerk contrasts sharply with the denial of bail to other individuals implicated in the same scandal. Moreover, while a directive from the Ministry of Local Government states that council employees should not return to work until their court cases are resolved, Chisango and his associates continue to violate these rules. He has even publicly claimed to have the support of Zimbabwe’s President.

As the officer responsible for signing contracts, the Town Clerk’s actions raise serious concerns about accountability and justice. Harare residents deserve transparency from their officials, and the misuse of public funds must be addressed. The scandal has highlighted the deep-rooted corruption in Harare’s administration, and it is essential that all those involved are held accountable to restore trust in the city’s governance.

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Delta Corporation Reports Decline Due to Illicit Brews and Smuggled Products

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Delta Corporation Limited’s associated entities are expressing concern about the adverse effects of counterfeit and smuggled imported goods on their operations.

African Distillers (Afdis) has reported that its business is suffering due to illegal brews produced in informal settings and wines and ciders smuggled into Zimbabwe. This influx has notably hindered their volume growth, as consumer preferences shift towards these alternative products.

Similarly, Schweppes Zimbabwe, another Delta associate, has observed a rise in smuggled imports of its popular Mazoe Orange Crush from regional markets. Challenges such as the sugar tax and market access regulations have also negatively impacted the company’s volume performance.

The increase in smuggled and counterfeit goods is largely attributed to inadequate border controls. There have been allegations of complicity among some immigration officials and Zimbabwe Revenue Authority (Zimra) personnel in facilitating these illicit activities.

Despite existing laws and enforcement efforts, the market continues to be flooded with unauthorized products. The Consumer Protection Commission (CPC) has noted that some of these illicit products are manufactured locally in unregulated settings or smuggled through poorly guarded border points, leading consumers to choose cheaper, lower-quality options.

The situation has been worsened by foreign traders’ preference for US dollars, which has incentivized smuggling activities. Local businesses and SMEs are struggling with this unfair competition from goods that bypass formal import channels.

Schweppes Holdings Africa Limited reported a 12 percent decline in volume for the quarter, primarily due to significant price hikes from the sugar tax affecting their cordials. The company also faced challenges from informal imports of Mazoe Orange Crush and disruptions related to market access regulations, according to Delta’s company secretary, Faith Musinga.

Industry leaders suggest a collaborative approach involving various stakeholders and the private sector to tackle the issue. Despite these challenges, Schweppes Zimbabwe saw positive results in juice drinks and bottled water volumes following the installation of a new plant in October 2023.

Afdis also experienced a six percent growth in wine and cider volumes for the quarter compared to the previous year, despite the increased presence of informal imports and counterfeit products. Afdis reported a revenue of US$12.6 million for the first quarter ending June 30, 2024, maintaining consistency with the same period last year.

Managing Director Stanley Muchenje noted that revenue was affected by changes in sales mix and price adjustments made to maintain market share against both imported goods and local affordable spirits.

Looking ahead, Delta Corporation is focusing on leveraging anticipated economic growth driven by infrastructure projects, tourism, mining, and increased remittances from the diaspora to support future growth.

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