In this week’s Monday Opinion, we look at the potential of Zambia’s mining sector, specifically focusing on the viability of manganese and gold mining to drive economic growth and job creation. The mining sector has been the backbone of Zambia’s economy, contributing 17.5 percent of its GDP and over 70 percent of export earnings. However, the country’s heavy reliance on copper extraction has overshadowed the exploitation of other mineral resources, such as gold and manganese. Recognizing the shifting dynamics of the global economy, where renewable technologies are becoming increasingly crucial, Zambia stands at a pivotal moment to harness the opportunities presented by these two minerals.

The Viability of Manganese Mining

The viability of manganese mining in Zambia is undeniably promising, considering its increasing significance as a key input in renewable technologies. With the global demand for renewable energy solutions on the rise, manganese is poised to experience exponential growth in demand, presenting a lucrative opportunity for the nation. Zambia’s substantial reserves of this valuable mineral position the country as a potential major supplier in the global market, providing a pathway for economic prosperity.

Furthermore, as electrification and the adoption of electric vehicles gain momentum, manganese’s essential role in lithium-ion batteries further cements its importance in the green energy revolution. By strategically developing the manganese mining sub-sector, Zambia can position itself as a significant player in the renewable energy supply chain, attracting foreign investments and generating substantial export revenues.

Beyond its potential impact on renewable technologies, manganese mining sub-sector also holds significant economic growth potential. Attracting Foreign Direct Investment (FDI) into the manganese sector will inject capital into the economy, fostering the development of critical infrastructure, technology, and expertise. As manganese exports increase, the country can expect a surge in foreign exchange earnings, bolstering economic stability and reducing reliance on copper revenue. Moreover, the expansion of the mining industry is likely to create a ripple effect, leading to increased business opportunities in associated industries such as transport and service as well as a boost in employment rates across the nation.

The Potential of Gold Mining

Regarding gold mining, it is essential to acknowledge the nation’s abundant history in this sector, which traces back to as early as 1902. Despite the mining industry predominantly concentrating on copper, Zambia has reported the discovery of more than 300 deposits of gold across its territory. Notably, recent gold rushes in regions like Mwinilunga, Rufunsa, and Lusangazi have brought to light the promising prospect of gold mining as a substantial contributor to the country’s economic growth, alongside its traditional reliance on the copper industry.

Gold mining operations in these areas have led to increased income generation for local communities. Artisanal and small-scale miners are actively engaged in gold extraction and sales, providing them with disposable income to support their families, educate their children, and meet their basic needs, according to a study conducted by the Centre for Trade and Development in conjunction with the University of Zambia. This economic empowerment trickles down to boost other businesses in the region, such as lodges, restaurants, and suppliers of mining equipment, fostering a multiplier effect.

Challenges and the Path Forward

While the viability of manganese and gold mining holds immense promise for Zambia’s economic transformation, it is crucial to acknowledge and address the challenges associated with these endeavours. Lack of geological information, disseminated ore bodies, lack of access to finance, and inefficient mining and mineral processing techniques are among the obstacles that need to be overcome to fully harness the potential benefits of these mining ventures.

Conclusion

Harnessing the potential of manganese and gold mining presents Zambia with an unparalleled opportunity to usher in a new era of economic prosperity and job creation. As the world shifts towards renewable technologies, the global demand for these minerals will only grow, placing Zambia in a favourable position to become a key player. With proper policies and adopting sustainable practices, Zambia can transform its mining sector and chart a path towards inclusive and sustainable growth. In our next piece, we will delve into key recommendations that can help unlock the full potential of manganese and gold mining, driving Zambia’s economic growth and creating more jobs.

About the Authors

Elijah Mumba is a policy researcher and development economist who currently leads the Extractives Desk at the Centre for Trade Policy and Development. He holds a Bachelor of Arts degree in Economics with Mathematics from the University of Zambia and a master’s degree in Development Economics from the University of Cape Town.