The impact of the Zimbabwean Space Agency’s programme for the mapping of mineral reserves on foreign direct investment in Zimbabwe

Abstract

This dissertation will examine Zimbabwe’s mining sector as well as its foreign direct investment climate to date, to ascertain what are the most feasible solutions to its mineral mapping challenges. Zimbabwe is well endowed with mineral resources, so much so that much of its Gross Domestic Product (GDP) is hinged on the mineral sector, especially post the economic meltdown that was largely caused by the failed land reform programme.1 Studies have shown that mineral mapping and exploration are a platform for stimulating economic growth through beneficiation and value addition.2 However, for a development strategy based on resources to succeed it is fundamental to comprehend the socio-economic and political dynamics that have hindered the development of mining policy and decision making to date.3 The challenge Zimbabwe is facing currently is that these resources were last mapped in 1980, such that it is unknown what is the full allocation of these resources today. This hinders new and current interest in the mining sector meaning that the country is losing out on potential foreign direct investment. Seeking a solution to this, on the 26th of July of 2018, the Minister of Higher Education & Technology established,4 in terms of Section 24(1) read with Section 24(3) of the Research Act [Chapter 10:22],5 the Zimbabwean National and Geo-Spatial Space Agency (ZINGSA). ZINGSA was intended to use satellite Geospatial Information Services (GIS) technology to monitor the country’s large, untapped mineral reserves, focusing on lithium and graphite. This process began with an agreement signed between ZINGSA and South Africa’s Space Advisory Group to kickstart operations, after which the Minister of Higher And Tertiary Education, Science & Technology Development, Professor Amon Murwira, announced that the government had pledged USD$1 million towards the agency’s pilot programme,7 and a further USD$10 million by the Ministry of Finance.8 ZINGSA intends to utilize satellite applications for the advancement of geo-spatial science, satellite communication systems and earth observation.9 I will pay particular focus to the Space Agency’s Programme for the mapping of mineral reserves and how it is intended to stimulate foreign direct investment within the mining sector through the use of satellite technology and also discuss its viability as compared to other alternatives. My proposal is that the use of satellite technology will map mineral reserves at a more precise scale and is to be preferred. Country specific and sectorspecific rules and the manner in which they are formulated, interpreted, applied and violated must be studied,10 hence the discussion will address natural resource investment as key to Zimbabwe, and Africa’s development. There will also be recommendations on good governance and resource management, possible fiscal regimes for the extraction of natural resources, environmental impacts and finally corporate social responsibility and the extent to which ZINGSA’s mineral mapping policy has or can support these pillars to stimulate investment in Zimbabwe’s mining sector. Where the programme is deficient or yet to be implemented, this dissertation serves as a policy guide on the most economically viable and sustainable frameworks applicable to the Zimbabwean mining and foreign direct investment context.