Mining and Minerals Revenue Distribution in Zimbabwe: Learning from Our Surroundings and Past Mistakes

Abstract

The distribution of mining revenue in Zimbabwe has attracted a lot of attention especially with the discovery of diamonds. The mining sector itself plays a very important role in the development of any country. In Zimbabwe it has become one of the fastest growing sectors of the economy since 2009. The overall objective of this paper is to investigate the distribution of mining revenue in Zimbabwe. The study was conducted through consultative workshops, focus groups and interviews of key informants from different provinces. Secondary document review was also done to support information gathered from the consultations. The study indicated that there should be specific laws and policies on how mining companies give corporate social responsibility (CSR); the operation of community trusts which were stipulated in the Indigenization and Empowerment Act (Chapter 14:33) should be clear and transparent; and the needs of small scale miners should be taken into consideration so that they can also effectively contribute to the revenue of the country and the communities they are operating in. Several recommendations came out of these discussions and some of the major recommendations included that corporate social responsibility (CSR) be regulated so that all mining companies are bound by law to plough back into the community. It was also recommended that there be a special fund for mining revenue like in other African countries (Botswana, Nigeria, and South Africa.

Keywords: distribution, mining revenue, empowerment, communities, indigenization.