Business
Businesses That Support Social Development Deserve Tax Relief – Mnangagwa
The Ministry of Finance and Investment Promotion is crafting a new, wide-ranging Financial Sector Policy, and Deputy Minister David Kudakwashe Mnangagwa has called on private sector stakeholders to actively engage in the process—particularly in integrating Environmental, Social, and Governance (ESG) principles.
Speaking at an ESG Reporting Workshop hosted by Enviroedge Consulting and Seall Intelligence at the Management Training Bureau in Msasa, Harare, Mnangagwa emphasized that Zimbabwe must move toward aligning its ESG practices with global standards to boost investment potential and access sustainable finance.
“The Ministry is currently working on a comprehensive financial sector policy, which offers a critical opportunity to embed ESG issues meaningfully,” he said. “It’s the private sector that must champion this integration.”
Mnangagwa noted that Zimbabwe and many African nations already practice sustainable development within communities—but often informally. To benefit from international green finance and investment opportunities, these efforts must be captured in formal policy frameworks and standardized reporting mechanisms that meet global expectations.
“This isn’t about surface-level compliance. We’re already taking action on the ground. The challenge is to structure and present it in a way that aligns with global reporting frameworks so we can access the capital that’s out there,” he said.
He stressed that companies need to go beyond implementing ESG initiatives and begin documenting their efforts through credible, audited reports if they wish to attract international capital. Doing so, he added, would ease the government’s financial burden in key areas like health, education, and environmental protection.
The Deputy Minister also proposed that companies investing in social and environmental outcomes could be rewarded—potentially through tax breaks or other incentives.
“If a company is taking on responsibilities that the government would typically finance, that contribution should be acknowledged—possibly through tax relief. But it must be tied to clearly documented outcomes,” Mnangagwa said.
He urged businesses to put forward real-world models that show how their ESG practices support national development priorities, especially in sectors like public health, ecological restoration, and local infrastructure.
“There’s always tension between government wanting to maximize tax collection and companies carrying out public-interest projects. But if businesses are genuinely helping meet social needs, there must be a mechanism to reflect that contribution,” he said.
Mnangagwa also cautioned against superficial ESG compliance, emphasizing that Zimbabwe must create a solid, transparent ecosystem where ESG practices are monitored, enforced, and trusted by international investors.
“When global assessors look at Zimbabwe, they need to be assured that our policies are not just on paper—and that reports from our companies reflect genuine, verified actions,” he said.
While acknowledging the high costs of ESG adoption—including staffing, systems, and operational changes—Mnangagwa encouraged businesses to see ESG as a strategic opportunity to share in the country’s development burden, especially in areas where the state is under-resourced.
He concluded by stressing that any ESG framework developed without private sector input risks being ineffective.
“If the government drafts regulations in isolation, we might roll out a Statutory Instrument tomorrow—but will it be practical or impactful? That’s why this dialogue matters,” Mnangagwa said.
Business
Kutsaga fueling food security and rural growth
Kutsaga Research Station, once synonymous with Zimbabwe’s tobacco industry, is now spearheading a transformative agricultural revolution, pivoting its scientific prowess towards rural industrialisation and national food security.
This monumental shift, lauded by Agriculture Permanent Secretary Prof. Dr. Obert Jiri at the recent ZITF 2026, marks a critical stride in aligning research with commercial viability and the nation’s ambitious Vision 2030 agricultural agenda.
Prof. Dr. Jiri said Kutsaga’s innovative expansion beyond its traditional mandate.
He specifically praised the station’s success in developing tissue-cultured virus-free sweet potatoes and pioneering industrial hemp cultivation.
These initiatives exemplify how institutional expertise can be leveraged to create commercially viable products, underscoring the imperative that research must be commercialised to ensure its long-term sustainability.
“Kutsaga’s transformation is not just about diversifying crops, it is about building resilient value chains that directly benefit our rural communities,” said Prof. Dr. Jiri.
ALSO READ: Global seed giants eye Zimbabwe as strategic hub
This strategic redirection aims to reduce the nation’s reliance on single commodities, thereby shielding farmers from the volatile impacts of market fluctuations and climate change.
The move is a direct response to Zimbabwe’s Vision 2030, which prioritises agricultural transformation as a cornerstone for economic growth and stability.
Business
Prospect Lithium Marks Historic First with Lithium Sulphate Export
Prospect Lithium of Zimbabwe has dispatched its first consignment of lithium sulphate from its newly commissioned US$400 million processing plant at Arcadia Mine.
According to the company, this is the first time lithium sulphate has been produced not only in Zimbabwe but across the African continent.
The milestone signals a significant move towards increased local processing of lithium, rather than exporting raw or semi-processed materials.
Prospect described the development as a breakthrough for the country and region, noting that the shipment represents the first production of lithium salts in Zimbabwe and Africa, and highlights progress in mineral beneficiation and industrial growth.
Zimbabwe has been tightening its policies on lithium exports in recent years. In 2022, the government banned the export of raw lithium, pushing mining companies to process the mineral into concentrates.
At that time, major players, including Prospect Lithium (owned by Huayou Cobalt), had already begun upgrading their operations.
In 2025, authorities raised the requirements further, announcing that by 2027, lithium producers will be expected to export sulphate, a higher-value product used in the manufacture of battery materials.
To support this transition, a 10% tax was introduced on lithium concentrates to encourage further processing.
Earlier this year, the government also temporarily halted concentrate exports, later allowing limited shipments under a quota system as producers adjust to the new value-addition requirements.
Business
Steelmakers Limited Drives Zimbabwe’s Industrial Growth Under Vision 2030
Zimbabwe is working to grow its industries under Vision 2030 Zimbabwe, and local companies are playing an important role in this effort.
One of these companies is Steelmakers Limited, which is helping the country produce more goods locally instead of importing them. By doing this, Zimbabwe saves foreign currency and strengthens its economy.
Steelmakers Limited stands out because it controls the whole production process. It mines iron ore in Masvingo and coal in Chiredzi, then uses these materials to produce sponge iron and finally finished steel products in Redcliff and Harare.
This means most of the work is done inside the country, creating more value locally and reducing the need to buy materials from outside.
The company also took part in the Zimbabwe International Trade Fair 2026, where it showcased its products and connected with business partners, investors, and government officials. This helped promote Zimbabwean steel and opened opportunities to sell products in other countries.
Steelmakers Limited plays a big role in national development. By producing steel locally, it reduces imports and helps keep money in the country. Its products are important for building houses, roads and factories supporting mining and agriculture. Steel is essential for development, and the company helps provide it.
The company also supports other sectors of the economy. Its operations create jobs and increase demand in transport, logistics, and engineering industries. This means its impact goes beyond just making steel.
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