Source: Zim aligns economic strategy to global trends: Mthuli – herald

Professor Mthuli Ncube

Oliver Kazunga

Senior Reporter

ZIMBABWE is positioning itself at the forefront of the global Artificial Intelligence and critical minerals revolution, betting on lithium beneficiation, data centres and advanced manufacturing to drive the next phase of economic growth.

Speaking at a virtual Press conference at the World Economic Forum’s Annual Meeting of the New Champions in Dalian, China yesterday, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said the country was aligning its economic strategy with emerging global trends that are expected to reshape investment flows, industrial production and technological development.

Prof Ncube said AI had emerged as the most significant driver of future economic growth, attracting unprecedented levels of global capital and creating new opportunities for countries prepared to embrace the technological shift.

“Artificial intelligence is going to be the biggest driver of development, of economic growth going forward. It will be adopted by companies, by Government at different paces, at different speeds, but it is so far attracting a large amount of investment into that sector,” he said.

Prof Ncube said Zimbabwe could not afford to be left behind as the world entered a new technological era.

Recently, the country launched National Artificial Intelligence Strategy, which is anchored on transforming Zimbabwe into a regional hub for AI innovation, developing AI talent, modernising agriculture and mining, improving healthcare and building a digitally empowered society.

It is a vision rooted in the belief that Zimbabwe should not merely consume technology developed elsewhere but become a creator of its own solutions.

“We must prepare for it now and take our place in this new global technological revolution, which should not be left behind and support the development of data centres across Zimbabwe,” said Prof Ncube.

He said discussions at the global gathering had underscored the growing strategic importance of critical minerals such as lithium and rare earth elements, which are essential components in batteries, renewable energy technologies and advanced manufacturing.

Prof Ncube said Zimbabwe had already taken decisive steps to maximise value from its mineral resources through beneficiation policies designed to move the country beyond the export of raw minerals.

“Companies cannot export unbeneficiated lithium and they should beneficiate to the level of lithium sulphate from a lithium company, which can go directly into battery manufacturing.

“Sometimes once a company has moved from just mere lithium mining to now manufacturing, because this beneficiation is now more manufacturing than mining, then we can also extend additional incentives in the form of tax breaks and our special economic zone provisions,” he said.

In February this year, the Government suspended the export of lithium concentrates and other raw minerals as part of a broader strategy to enhance accountability, promote beneficiation and strengthen value retention across the mining sector.

Following the export ban, authorities introduced a quota system for lithium producers to export concentrate under strict conditions, designed to safeguard production continuity while supporting the transition to full beneficiation.

The Government has indicated that the export of lithium concentrates will be phased out entirely by January 2027, by which time all producers are expected to have established processing facilities.

Prof Ncube said the shift from mineral extraction to mineral processing effectively transformed mining investments into manufacturing projects, enabling investors to access additional incentives, including tax breaks and special economic zone benefits.

He added that the Government was investing in mineral-testing and assaying infrastructure to ensure the full value of exported minerals was properly understood and taxed.

“For those where we cannot beneficiate, we are building laboratories for mineral testing, for assaying to make sure that what we export is well understood, the composition of the ore is well understood as to which minerals are in there, so that we can then levy the right level of royalties on these minerals and again maximise on value”.

Prof Ncube said the Dalian forum has highlighted the growing influence of geopolitics on global trade, investment and capital flows, creating both challenges and opportunities for developing economies.

He noted that rising geopolitical tensions and global conflicts had contributed to higher financing costs for African countries, making it increasingly important to diversify sources of capital.

Prof Ncube said Zimbabwe was pursuing membership of alternative international financial institutions, including the BRICS New Development Bank and the Asian Infrastructure Investment Bank.

“We have applied to join the BRICS Bank. That membership application is being considered, it’s being processed. I also visited the Asia Infrastructure Investment Bank again with a view to getting Zimbabwe to join this bank.

“The idea is to always have choices and alternatives for sourcing capital for both our private sector and also the sovereign, but mainly the private sector because that’s where most of the growth is coming from,” he said.

Prof Ncube revealed that Zimbabwe was leveraging the Dalian forum to engage strategic investors in sectors ranging from fertiliser production and mining to urban development and infrastructure.

Among the engagements were discussions with companies involved in fertiliser projects in Norton and Beitbridge, lithium beneficiation investments and potential partnerships for the development of the new city in Mt Hampden.

He said Zimbabwe’s economic fundamentals remained strong, citing newly released official data showing the economy expanded by 8,2 percent in 2025, the highest growth rate in sub-Saharan Africa.

The growth was driven by robust performances in agriculture, manufacturing, mining, information and communication technology, wholesale trade, financial services and insurance.

“We have work to do, but I think that we have figured things out and we know how to target the right drivers of economic growth, including some of the new areas which were discussed at this Dalian forum meeting,” said Prof Ncube.

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