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.

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.

Zimbabwe’s 2026 tobacco marketing season is recording a notable increase in volumes, although prices continue to lag behind last year’s levels, reflecting shifting market dynamics.

As of Day 34 of the selling season, a total of 149.92 million kilograms of tobacco has been sold across both auction and contract floors.

This marks a significant rise compared to the same period in 2025, when 93.99 million kilograms had been sold.

Strong Growth in Volumes

Auction floors have contributed 8.81 million kilograms, with an average price of US$2.06 per kilogram. Meanwhile, contract sales dominate the market, accounting for 141.12 million kilograms at a higher average price of US$2.69 per kilogram.

Combined, the national average price currently stands at US$2.65 per kilogram.
The figures reflect a year-on-year volume increase of over 59%, highlighting strong farmer participation and improved output this season.

Prices Under Pressure

Despite the impressive growth in volumes, prices have declined significantly. During the same period in 2025, tobacco was selling at an average of US$3.42 per kilogram, meaning prices have dropped by approximately 22.5% this year.

This downward trend suggests several possible factors at play, including:

Increased supply, which may be putting pressure on buyers and reducing competitive pricing

Variations in quality, with a larger proportion of lower-grade leaf entering the market

Weaker global demand conditions, affecting export-driven pricing structures

Outlook for the Season

While lower prices may affect farmer earnings, the higher volumes could help cushion overall revenue losses, especially for large-scale producers.

However, for smallholder farmers, profitability may remain a concern if input costs are not matched by returns.

Market watchers will be closely monitoring upcoming sales trends to determine whether prices stabilise or continue to soften as the season progresses.

Overall, Zimbabwe’s tobacco sector remains resilient in output, but the price dynamics signal the need for strategic adjustments to maintain value in the global market.