The Rise of Green Industrialisation and the Role of Critical Minerals
The 21st century has witnessed a significant shift towards green industrialisation, where businesses are increasingly expected to operate in an environmentally sustainable manner. This transformation is driven by the need to reduce carbon emissions and meet global climate goals. As a result, companies are adopting renewable energy sources and implementing eco-friendly production methods. In the future, firms that fail to comply with these standards may face challenges in exporting their products to advanced economies such as the European Union (EU), the United States, and Japan.
For instance, starting from 2026, the EU plans to impose carbon taxes on imports from other countries. These taxes will penalise businesses for the carbon emissions associated with their products, making it essential for firms to adopt greener practices. Additionally, the rapid adoption of technology across all sectors of society has increased the demand for tech-based products and services. Artificial intelligence, smartphones, computers, electric vehicles (EVs), and digital work methods have become integral to modern life, further driving the need for technological innovation.
To meet this growing demand, certain minerals are indispensable. These are known as critical minerals, which include lithium, platinum group metals, chrome, nickel, phosphate, graphite, manganese, vanadium, titanium, cobalt, copper, and rare earth elements, among others. These minerals are not only vital for producing renewable energy equipment and technological products but also play a crucial role in the development of defence and aerospace technologies.
Critical minerals are scarce and have no viable substitutes, leading to a situation where demand often outpaces supply. According to the World Bank, the demand for critical minerals is projected to increase by approximately 500% between 2018 and 2050. This presents both a challenge and an opportunity for countries rich in these resources.
Zimbabwe and several other African nations are well-endowed with critical minerals, positioning them to benefit significantly from their exploitation. However, despite being among the top producers of various critical minerals, Zimbabwe primarily exports them in raw form or as minimally processed goods. This lack of value addition limits the economic benefits that could be derived from these resources.
Steps to Develop a Critical Minerals Strategy
To maximise the potential of its critical minerals, Zimbabwe must develop a comprehensive strategy. The first step involves identifying the critical minerals available within the country. Lithium, chrome, platinum group metals, vanadium, and antimony are likely candidates. The government may also consider including non-traditional minerals such as coal and iron ore, as they play a fundamental role in shaping the nation’s economic future.
Once the list is compiled, the next phase should focus on mapping the value chain for these minerals. For example, the process of extracting lithium from the ground and using it in electric vehicle batteries, stationary energy storage systems, cell phones, and medicines should be thoroughly examined. This will help identify opportunities for local production and highlight existing constraints such as energy availability, skilled labour, and logistics.
The third stage involves developing a strategic document that outlines the goals and actions necessary to leverage these minerals for economic growth. This should translate into concrete policy measures, including a roadmap for implementation with clear timelines. Finally, the strategy must be put into action through coordinated efforts across different sectors.
Additional Considerations for a Successful Strategy
A successful critical minerals strategy should prioritise exploration, beneficiation, regional integration, and energy security. Exploration is essential for discovering new mineral resources, and setting targets for annual exploration expenditure as a percentage of GDP or global exploration spending can help attract investment. South Africa, for example, aims to allocate 1% of its GDP to minerals exploration and capture 5% of global exploration expenditures annually.
However, exploration is a long-term process, often taking up to 15 years from discovery to commercial extraction. Therefore, laying out clear targets and strategies for attracting exploration funding is crucial. Encouraging grassroots exploration by small-scale miners can also contribute to the discovery of new deposits. These miners often sell their claims to established companies, creating job opportunities and generating government revenue.
Formalising informal miners is another important step. The government should follow up on areas where significant mineral deposits have been identified by informal players and offer these resources to formal operators for development. Informal miners who cooperate can receive a shareholding in the resulting formal structures, ensuring environmental protection, crime control, and tax compliance.
In South Africa, mining accounted for 470,000 direct jobs, contributed $5 billion in taxes, and generated $49 billion in exports in 2022. A similar outcome is possible for Zimbabwe, given its abundant mineral resources.
Enhancing Local Processing and Skilled Workforce
Increasing local mineral beneficiation is critical for economic development. Zimbabwe, as Africa’s largest producer of lithium, can leverage this position to manufacture lithium batteries. Key components such as nickel and iron are readily available locally, while manganese, copper, and cobalt can be sourced from neighbouring countries. Collaborating with South Africa, which has superior processing capabilities, can provide valuable expertise in battery manufacturing.
The government can also invite international manufacturers to set up operations in Zimbabwe. Similarly, the country can explore the production of vanadium batteries, given its vanadium deposits. If full local production is not feasible, regional value chains with neighbouring countries can be established to ensure mutual benefits.
Developing a skilled workforce is equally important. Zimbabwean universities and technical institutions must be equipped with the necessary resources to train students in advanced industrial processes. Public scholarships can be offered to local students, with contractual obligations to work in Zimbabwe after graduation. Job guarantees and competitive salaries will ensure that graduates remain in the country and contribute to its industrial growth.
Infrastructure Development
Infrastructure is another urgent priority. Zimbabwe currently faces a power deficit of around 2,300 MW, which hinders mining operations. Establishing additional power plants, including at least 3,000 MW, is essential to support industrial expansion. Connecting key mining areas to railway lines will facilitate the movement of bulk minerals such as chrome and lithium. Ensuring that border infrastructure can handle increased trade activity will also be crucial for economic growth.
