Harare: Zimbabwe has lost US$144 billion in potential revenue from the mining sector since 2009, largely due to a plethora of problems, among them a power supply crisis, punitive tax regime and investor fatigue caused by unfriendly laws, the Financial Gazette can report.
Volatile commodity prices are also said to have played a part in the sector's failure to recognise its full potential, according to figures from the Chamber of Mines of Zimbabwe (CoMZ).
The CoMZ data revealed that the country's 800 mines had capacity to earn US$18 billion per annum, but are currently only turning out about US$2 billion annually since 2009 when the country dollarised its economy to escape a hyperinflationary crisis.
This represents about a tenth of the sector's full potential and translates to a loss of potential revenue amounting to US$16 billion annually, or US$144 billion since 2009.
The mining sector, considered by government to be one of four sectors supporting economic recovery, are currently facing problems in the payment of foreign suppliers of critical materials that have reportedly hampered production. This is despite the fact that mining is currently the single largest foreign currency earner in the country.
Resources analysts acknowledged that the cash-strapped country was losing substantial amounts in potential revenue, saying this boiled down to poor investment policies and an environment that undermined existing operations.
