Govt moves to crush ‘proxy mining deals’

PHILLIMON MHLANGA IN BULAWAYO

Government is plotting a crackdown on opaque mining transactions, warning of imminent blacklisting for individuals exploiting mining titles through “proxy” arrangements, Business Times can report.

Speaking at the ongoing Zimbabwe International Trade Fair (ZITF) in Bulawayo, the Minister of Mines and Mining Development, Polite Kambamura, said authorities had detected a surge in speculative trading of mining rights, often disguised as legitimate investment deals.

“We have noticed that there are people who are selling mining rights. The ministry will be blacklisting all those that will be selling their mining title in the name of selling to investors, yet they will be selling to proxies. So, be warned, very soon, we are going to come up with that policy pronouncement,” he said.

The warning signals a broader tightening of regulatory oversight across Zimbabwe’s mining sector, particularly within the small-scale segment, which has become a magnet for both domestic and foreign capital.

Kambamura said investigations had uncovered instances where title holders purported to partner genuine investors while, in reality, transferring control to undisclosed third parties—undermining policy intent and eroding local economic participation.

“We noticed that there are those that are coming to invest in the small-scale sector. We have looked at that with an eagle’s eye and come up with policy intervention. Small-scale mining is for Zimbabweans,” he said.

As part of the impending reforms, Government will introduce stricter investment compliance measures, including minimum capital thresholds and mandatory regulatory clearances. All prospective investors will be required to channel their investments through the Zimbabwe Investment and Development Agency (ZIDA), obtain Treasury approval, and deposit capital with the Reserve Bank of Zimbabwe (RBZ).

“They cannot just invest haphazardly. They need to come through ZIDA, the Ministry of Finance, get approved on what they have, and deposit with the Reserve Bank of Zimbabwe their investment capital. We are going to protect our people,” Kambamura said.