Abstract:
Zimbabwe is endowed with many valuable mineral resources which when properly managed have the potential of contributing towards national development. Beneficiation and value addition are key when looking for national value beyond mineral extraction. The initial step of managing mineral wealth is the legal and policy framework which guides operations and sets standards. Zimbabwe has for a while been ambitiously singing the gospel of beneficiation and value addition, but for all their efforts, beneficiation and value addition has not grown as much as envisioned. The study sought to ascertain the role of regulatory framework in contributing to the growth of the industry focusing on beneficiation. Using the critical analysis methodology, the research studied primary legislation and policy documents. This was aided by the literature review of relevant mining journals and other literature. Beneficiation was defined in general, and particularly within the Zimbabwean context. The two dominant theories on how to encourage beneficiation are discussed, namely, the stick approach and the carrot approach. A review of Zimbabwe’s framework revealed that they had both positive and negative incentives to encourage beneficiation, but the fiscal pressure on the government has resulted in the state trying to run a “Command economy” through the use of the stick approach. The analysis reveals that in legal terms i.e. on paper, Zimbabwe was on course towards beneficiation and value addition. The missing link is the socio-economic and political enabling environment. Mining between 2009- 2016 contributed to the growth of the economy. The minerals found in Zimbabwe make value addition and beneficiation with the multiplier effect possible. Having identified the minerals sector management model, the next step would be to address the shortcomings and push on with the business of development. The exigent factors affecting the beneficiation drive such as were governance challenges, policy volatility, power shortages, human capital and technical capacity, lack of adequate infrastructure, perception of investors and international trade challenges were identified and explained. The study recommends stakeholder engagement to draw up a new mining sector policy which takes into account the shortcomings of the beneficiation enabling environment of Zimbabwe and puts in place the guarantees required by the investor. The regulatory framework must facilitate trade and business and be guided by sound economic principles and not politics.
