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May 10, 2022

Cabinet has approved a PPP Agreement Dinson Iron and Steel Company Pvt Ltd (DISCO) and ZETDC. DISCO is setting up a Greenfield Integrated Iron and Steel Plant in Chivhu between Mash East and the Midlands. Zimbabwe uses a lot of iron and steel on its infrastructure programs.

Cabinet approved the Joint Venture Agreement between Mazowe Rural District Council and Samano Holdings (Pvt) Ltd

Cabinet approved the Joint Venture Agreement between Mazowe Rural District Council and Samano Holdings (Pvt) Ltd will involve the exploration and mining of limestone, thereby contributing to increased revenue inflows for the local authority. Samano Holdings will invest US$10.6 million into the venture, including US$4.5 million required for the 5MW solar plant to supply power to the mining operations. Mazowe Rural District Council will contribute mineral resources and the mining title. The Mazowe RDC and Samano Holdings joint inject will run on a shareholding ratio of 30:70 in the first five years and 40:60 subsequently. The project will create at least 1 000 jobs for locals, generate US$170 million over ten years and plough back to the community through corporate social responsibility programmes. The mining venture will also provide wide range of products for use by agricultural and construction industries, thereby contributing to economic growth for the surrounding areas.

Cabinet considered and approved the Joint Venture Partnership between ZMDC and Govine Enterprises

Cabinet considered and approved the Joint Venture Partnership between ZMDC and Govine Enterprises on the resuscitation of underground operations and dump treatment at Shamrock Copper Mine in Mashonaland West Province. The mine is expected to produce 34 200 metric tonnes of copper per year and generate US$45 million annually when fully operational. Govine Enterprises will inject the required while ZMDC will contribute mineral resources, mining title, and infrastructure at the mine. ZMDC and Govine Enterprises will share revenue from gross sales in the ratio 20:80 in the first six years and 33:67 in the subsequent four years. The project will create 400 jobs for locals, and Zimbabwe will benefit from technology transfer as well as US$295 million in foreign currency generation over ten years. The investor, as part of corporate social responsibility, will construct amenities and facilities such as schools and clinics for the benefit of the local community.

Cabinet noted the Joint Venture Partnership between ZMDC and Chandiwana Mines (Pvt) Ltd

Cabinet noted the Joint Venture Partnership between ZMDC and Chandiwana Mines (Pvt) Ltd on the resuscitation of operations at Sabi Gold Mine. Chandiwana Mines (Pvt) Ltd will inject the necessary working capital, while ZMDC will contribute mineral and material resources. The joint venture will be for a five (5) year period and will contribute 1 428 kilogrammes of gold to overall national production. The project will initially create 650 jobs for locals, and this number will subsequently benefit 800 employees at full production. The other benefits of the project will include the following, among others: sustained production at Sabi Gold Mine; enhancement of the socio-economic environment in Zvishavane; and clearance of the debts as well as generating goodwill for Government as a shareholder. The project will also contribute to the US$12 billion Mining Industry by 2023, a milestone set by the Second Republic.

Cabinet Approves Joint Venture between TelOne, Flashcord & the National Venture Capital Company of Zimbabwe to form the Zimbabwe Innovation and Technology Company (ZITCO)

Cabinet considered and approved the following Investment Project which was presented by the Minister of Finance and Economic Development, Hon. Prof. Mthuli Ncube, as Chairman of the Public-Private Partnerships (PPP) Committee:

Proposed Joint Venture between TelOne, Flashcord & the National Venture Capital Company of Zimbabwe to form the Zimbabwe Innovation and Technology Company (Pvt.) Ltd. (ZITCO) for the Manufacture of ICT Devices; The economic benefits of the Joint Venture are:

i) employment creation: over 2 000 jobs will be created at the plant;

ii) revenue generation: local production of the devices will result in import substitution, thereby saving foreign currency. The targeted export market includes Zambia, Malawi, Namibia, Botswana & Mozambique, and exports are estimated to generate US$25 million in the first three years (2022-24); and

iii) strengthening of local industries through the engagement of local skilled personnel use of local and materials. This will promote both upstream and downstream industries.

Investments Across the Value Chain Amounted to US$20 Million

Speaking to State media Zimbabwe Association of Dairy Farmer National Chairperson Ernest Muzorehwa said the target is to ramp up output by 15 percent. “Since the beginning of the year 2021, investments across the value chain amounted to twenty million United States dollars. This has pushed capacity utilisation from 34% to in 2020 to 60 percent. The projected 2022 national milk production volume is 88.8 million litres which is 15 percent increase from the 2021 volume,” said Muzorehwa.

Zimbabwe Launches Land Bank To Drive Agriculture Growth

Agricultural Finance Corporation (AFC) launches land bank to provide affordable financing to farmers.

Cabinet approved a joint venture between the Cold Storage Company (CSC) and a United Kingdom firm, Boulstead Beef (Pvt) Limited

Cabinet approved a joint venture between the Cold Storage Company (CSC) and a United Kingdom firm, Boulstead Beef (Pvt) Limited, which will see the investor injecting US$130 million into the meat processing firm.