Leveraging Transition Mineral Extraction for Zimbabwe’s Socioeconomic Development: The Case of Lithium

The mining sector contributed US$5.6 billion to Zimbabwe’s GDP in 2022 and is expected to contribute $20 billion in 2030. Despite this significant contribution, Zimbabwe does not have a standalone national mining policy or a transition mineral-specific strategy to ensure it reaps the full benefits from its lithium boom.

This national policy gap takes on added significance given lithium’s growing role in the global energy transition. Lithium is key to the development of battery energy storage systems used in electric vehicles and other renewable energy technologies worldwide. As the host to Africa’s largest lithium reserves, Zimbabwe is therefore best positioned to take the lead in sustainable lithium mining on the African continent.

A new report by Tsitsi Musasike, Julie Radomski, Tinotenda Chidhawu, Hudson Mtegha and Earnest Rungano Chinyanga examines the impact of lithium mining on the Zimbabwe’s socioeconomic development trajectories at both the local community level and the national level. The paper draws on regional and international transition mining best practice to propose solutions to unlock the maximum developmental benefits for Zimbabwe’s economy.

Main Findings:

• Zimbabwe’s lithium mining subsector has advanced significantly compared with the rest of the continent, despite the current outdated policy framework. Due to its extensive reserves, this growth has been fueled by international investment and demand.
• The current governance and policy frameworks are lagging behind the boom. There is a need for legal and policy reform to best serve the country and local communities and enable fast-tracked sustainable lithium-based development.
• Evidence from community surveys and interviews indicates that while lithium mining companies provide some local support, local-level engagement remains limited. There are opportunities to be explored to ensure a mutually beneficial and inclusive relationship.
• There has been limited investment in infrastructure such as towns by lithium mining companies, compared with investment by multinational corporations in the pre-independence period. The lack of infrastructure investment risks slowing Zimbabwe’s ability to move up the value chain to maximize economic benefits.
  • Although companies are not legally obligated to provide public infrastructure, the state could play a stronger strategic role to coordinate investment in infrastructure that would benefit both mining companies and broader development goals.

The authors argue that Zimbabwe has the potential to lead the Southern African Development Community (SADC) region in migrating beyond lithium extraction and into processing and manufacturing. The migration is possible with significant infrastructure investment in supporting enablers such as energy, transport and water. To achieve this, Zimbabwe needs a comprehensive lithium strategy that addresses the development of local value chains in the subsector, thereby increasing development benefits for not only local communities but for the country and wider region.

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