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Zimbabwe has one of the largest reserves of lithium deposits in Africa, although estimates vary, it is ranked 6^thglobally although its lithium mining sector is relatively new. Lithium is a key mineral used in the production of lithium-ion batteries (and other industrial applications) which are crucial to the global energy transition. Lithium is crucial for electric vehicles, mobile phones and energy storage systems and its global demand has increased significantly, expected to increase fortyfold from 2020 to 2040, as the world moves away from fossil fuels and toward renewable sources of energy to mitigate climate change. The abundance of this critical mineral in Zimbabwe (and across other African countries) has raised hopes that it could contribute to the country’s economic growth and industrialization.  

In the last few years, Zimbabwe has witnessed a dramatic increase in Foreign Direct Investments (FDI) in its lithium sector. Chinese mining companies have invested billions of United States dollars in Zimbabwe’s lithium sector. These investments have created employment opportunities and contributed to wider economic activities especially near mine sites. For example, a report in a local news site highlighted how in 2023 alone Zimbabwe earned US$209million from lithium exports, the mineral is set to become the third biggest export after gold and platinum. Furthermore, the report highlighted how revenue generated from lithium exports grew from 1. 8 million in 2018 to US$ 70 million in 2022.

Lithium mining has also triggered economic activities in rural areas where new mines have been opened or are in the process of being set up. Moreover, the influx of potential investors seeking to acquire new lithium mine claims has also contributed to the growth of Zimbabwe’s tourism sector. Given the above, the Zimbabwean government has highlighted how lithium mining and indeed the extraction of other minerals will contribute to the achievement of its National Development Strategy (NDS1) under its Vision2030 of which seeks to attain an upper middle-income status by 2030.

However, with similar sentiments of hope shared for previous gold and other natural resource booms and with allegations of corruption, the lithium industry boom may see benefits shared only among wealthy elites at the expense of local workers, communities and environmental degradation. In addition, while Zimbabwe made about $ 200 million in revenue from Lithium in the first 9 months of 2023, economists estimate about $ 12billion lost through licit financial flows. Human rights abuses in the form of exploitative labour practices and child labour, environmental degradation and forced evictions are also tied to Zimbabwe’s lithium mining. The land rights of communities has also been threatened with forced evictions without consultation or consent raising questions about the implementation of the existing regulatory framework. In addition, it also raises questions about the battery minerals sector in Zimbabwe, mostly Chinese companies, and their company approaches to free, prior, and informed consent (FPIC). As multinational companies operating in an international vacuum of any binding laws as it relates to the implementation of human rights due diligence processes and consultation, it becomes necessary for willing governments to close lingering gaps in the international and regional governance of supply chains.

It is important to note here that Zimbabwe’s lithium sector is relatively new, the wider dynamics underpinning the sector are not yet known due to lack of scholarly research. There is thus a need for more in-depth studies to investigate the political economy of lithium mining in terms of who has acquired what lithium assets, how they are mining and exporting the mineral. While the growth of the lithium sector and its contribution to Zimbabwe’s fledgling economy must be celebrated, there is a need to highlight some challenges facing the sector. First, Zimbabwe has imposed a ban on the export of unprocessed lithium ores as a way of promoting the beneficiation of minerals within the country in order add value before exports. While this is a noble policy which must be supported, it seems too early to impose a ban at a time when the country lacks refining capacity to process lithium ores locally.

Second, locals have complained that the ban seems to benefit mostly Chinese companies and their local proxies who have continued to export lithium ores while the ban is in place. Third, the ban has cut off local artisanal miners from the lithium value chain as they can no longer mine and sale their lithium ores to Chinese dealers, this was a major source of employment for unemployed youths across Zimbabwe’s mineral rich provinces. Moreover, the ban has promoted large scale exploration and mining of lithium while completely blocking artisanal and small-scale miners from exploring and registering small-scale lithium claims. As a result, allegations of corruption and nepotism in the processing of lithium mine claims and the export of raw lithium has further exposed some of the negative effects of the boom in lithium mining. In addition, the lithium rush has triggered class conflicts over the control of mineral rich lands among a diversity of people with interest in mining such as politicians, senior civil servants, military personnel and businessmen with political connections to the ruling ZANU PF political party. Some of these class conflicts have led to the eviction of artisanal lithium miners who were mining illegally on private and government owned claims. For example, a lithium rush at the government owned Sandawana mine in Mberengwa, Midlands Province led to the violent eviction of artisanal miners who lost their valuable lithium ores in the process. Given the above, some civil society organizations have argued that the boom in the mining of green minerals such as lithium is contributing to resource grabbing, environmental degradation and socio-economic injustices among mining communities.

The proposed panel seeks to investigate the dynamics underpinning Zimbabwe’s unfolding lithium sector within the broader context of climate change and global energy transition. Furthermore, the panel seeks to examine the interplay of resource endowments, local economic development, resource grabs, environmental degradation and human rights and conflicts over finite resources.

Moderator:

Sikho Luthango: Mineral Resource Governance and of Business and human Rights Expert, and Programme Manager at the Rosa Luxemburg Stiftung.

Presenters:

Dr Grasian Mkodzongi: Tropical Africa

Opportunities for local benefit Sharing in Zimbabwe’s Lithium Sector.

Mukasiri Sibanda: Publish What You Pay

Tax Justice in Zimbabwe’s Lithium Sector: Combating Corruption and Illicit Financial Flows.

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Fadzai Midzi: Projects Officer, Zimbabwe Environmental Law Association

Understanding the Political Ecology of Zimbabwe's Lithium Value Chain and Environmental Impacts of Lithium Extraction.

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