Zimbabwe mining's billion dollar leak

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Zimbabwe mining's billion dollar leak
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Zimbabwe is planning to double mine revenue by 2030, but revenue leakages are coming in the way

In 2018, Zimbabwe's president Emmerson Mnangagwa announced Vision 2030, a national development plan that Mnangagwa said would transform the country into an upper-middle-income nation within the next decade. Mining is a central part of Mnangagwa's Vision, with one of the goals being to boost mining revenue to US$12 billion annually. The industry is one of Zimbabwe's largest employers, bringing $5.2 billion to the economy in 2021.

Legislative gaps also play a significant role in undermining revenue collection. 78% of respondents said that taxation loopholes were behind revenue spills, while 60% mentioned inadequate oversight as a contributing factor. In their analysis, researchers said that weak tax law enforcement and poor oversight mechanisms result in inconsistent revenue collection. A lack of stringent checks and balances allows mineral smuggling and other illicit activities to thrive in Zimbabwe.

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