Mutuso Dhliwayo and Mukasiri Sibanda
Despite going in
circles on the adoption and implementation of the Extractive Industries
Transparency Initiative (EITI)in Zimbabwe, consensus for mining sector
transparency reforms exists among stakeholders. Through fiscal policies, the government
has repeatedly committed to either implement EITI or revive the Zimbabwe Mining
Revenue Transparency Initiative (ZMRTI) a home-grown version of EITI that suffered
still birth in 2013. Recently, Government raised concern that data inadequacy
and inaccuracy has stalled progress for a comprehensive mining fiscal regime
which balances national development interest and the interest of investors.
Industry, acknowledges that;
“A shared mining vision is not feasible
whenever information asymmetries exist among stakeholders, and dissonance among
key stakeholders always manifests itself as policy discord, which undermines
the performance and long-run development of the sector.
through Publish What You Pay (PWYP) campaign essentially, have continually
urged government to implement EITI to help cure the disconnect between mining
and local socio-economic development opportunities.
Cognisant that past attempts to bring much needed mining sector transparency reforms were fruitless, this time around, PWYP campaign is seeking to reinvigorate itself to hold government and corporates more to account through the adoption and implementation of EITI. As part of reinvigorating PWYP, the Zimbabwe Environmental Law Association (ZELA), is producing a series of papers to generate and sustain momentum for implementation adoption and implementation of EITI. This paper seeks to unpack government’s past efforts to implement ZMRTI and the developing interest on EITI, drawing lessons, and to highlight key drivers for revived interest in the adoption and implementation of EITI.
So much has changed since government made its first commitment in 2011 to adopt and implement ZMRTI. The move towards the adoption of the EITI is as a result of a number of factors. A new Constitution was adopted in 2013 which contains several provisions on good governance, transparency and accountability which resonates with EITI principles. “Zimbabwe is open for business dictum ”, a rebranding exercise undertaken by the new government to attract investment has been adopted. In the murky Marange diamond fields, a new company called Zimbabwe Consolidated Diamond Company (ZCDC) was birthed to deliver greater transparency and accountability in the diamond sector. Several mega deals running into billions have been announced for the mining sector alone. The anti-corruption drive and government’s focus on re-engaging the international community to unlock fresh development finance.
ever-evolving context, reflecting on past experiences, picking lessons and fine
tuning advocacy and campaign offers an
exciting value proposition.
Zimbabwe’s diverse and significant mineral resource base is characterized by opacity. This opacity is evident in the granting of licenses, negotiations of contracts, production of data, the collection, allocation, expenditure and accounting of mineral revenue. This has resulted in the mining sector not fulfilling its potential and expectations in terms of contributing towards economic development and improved service delivery. Rather than being a blessing by bringing sustainable economic, social and political development, Zimbabwe’s mining activities have resulted in the proverbial natural resources curse. One of the reasons for the state of affairs is poor mineral resources governance frameworks. This lacuna resulted in Civil Society Organisations in 2009 to begin advocacy efforts for the adoption of a good mineral resources governance framework by the Zimbabwe government. The objective of these efforts was to improve how mineral resources are exploited and the revenues generated managed. There are a number of mineral resource governance frameworks. These include the World Bank’s Extractive Industries Transparency Initiative (EITI), the Africa Union’s Africa Mining Vision (AMV) and the Natural Resources Charter (NRC). The EITI is among the most globally known mineral resources governance frameworks.
To that end, it was natural for CSOs in 2010 to
advocate for the adoption of the EITI by the government of Zimbabwe as a
mineral resources’ governance framework.
To strengthen work on advocacy for a better mineral resources governance , CSOs
launched the Publish What You Pay (PWYP)
Zimbabwe Chapter campaign in 2011.
The Government of Zimbabwe was not open to adopting EITI then due to a number
of reasons. These were mainly political. The government of Zimbabwe then was
having some serious problems with international initiatives like the Kimberly
Process Certification Scheme (KPCS) regarding allegations of human rights
violations over the exploitation of the Marange diamonds. They therefore saw
joining the EITI as another additional layer of compliance with international initiatives
which they regarded then as burdensome. However, while opposed to EITI as a
framework, they were not opposed to the EITI principles which they saw as
important in revenue transparency and accountability.
The Ministry of Finance and Economic Development (MoFED] was particularly
receptive to EITI while the Ministry of Mines and Mining Development [MMMD) was
the most critic. While there are so many reasons why the mining sector was
facing transparency challenges and still is,
its mainly because of an old and archaic legal framework reflected in
the Mines and Minerals Act.
The adoption of the Zimbabwe Mining Revenue
Based on the understanding that Zimbabwe needed
an initiative that promotes transparency and accountability but not necessarily
the EITI, a compromise was reached to adopt the Zimbabwe Mining Revenue
Transparency Initiative (ZMRTI). ZMRTI was an initiative of the Government of
National Unity (GNU) that was there from 2009 to 2013. The initiative was
housed under the Office of the then
Deputy Prime Minister [ DPM], Thokozani Khupe. ZMRTI was approved by the GNU
through the Medium-Term Plan on July 7, 2011
and was launched on the 8th of September 2011.
The DPM was the chairperson of the Cabinet Resource
Mobilisation Committee. Among its responsibilities were “to come up with
innovative ways of expanding the revenue base for the national purse”. The ZMRTI was seen as one such innovation.
The ZMRTI was based on the understanding of the role the mining sector could
play in the recovery, stabilization and growth of the economy. The ZMRTI was as
a result of the determination of the GNU to give priority to “ rebuilding the
mineral and mining sector as a core pillar of Zimbabwe’s economic and social
turn around and development plans and to ensure that the country’s mineral
wealth and natural resources were developed and exploited for national benefit
to help achieve growth , poverty reduction and economic and social equity”.
The ZMRTI was also a response to the growing interest and desire by
stakeholders within the then GNU to have a better understanding of the
contribution of the mining sector to Zimbabwe’s economic position. This was
very evident in the debates of the amount of taxes paid and the benefits
accruing from mining operations. The
objectives of the ZMRTI were therefore to:
a participative and multi stakeholder process in order to promote dialogue and
build trust by creating and effective forum for addressing mining sector issues
and potentially providing concrete recommendations to national policy makers
for decisions and action
independently -reconciled information for public dissemination setting out all
significant mining sector revenues flows paid by the industry and received by government;
a platform for ongoing policy reforms designed to achieve good governance of
the nation’s mineral resources and promote investment for the benefit of the
From the objectives, it is clear that ZMRTI derived its core principles from EITI. However, it is important to note that while ZMRTI derived principles from the broad EITI Standard, it was designed then to be implemented as “ a wholly Zimbabwean initiative to be implemented by Zimbabwean stakeholders in order to meet Zimbabwean national policy goals”. The ZMRTI was aimed to be stepping stone to Zimbabwe joining the EITI. The hope was that if ZMRTI was successful, it was in due course going to evolve as a process and Zimbabwe would apply to join and be part of the global EITI movement and apply the EITI Standard rules and methodologies as many countries that have joined are doing and derive benefits from joining the EITI.
(ZELA) was invited by the then ODP to coordinate the participation of Civil Society Organisations (CSOs) and Community Based Organisations (CBOs) into the ZMRTI process. Among the CSOs and CBOs that ZELA brought into the process are the Chiadzwa Community Development Trust (CCDT), and Centre for Research and Development (CRD).
Progress in the implementation of the ZMRTI
Progress towards the implementation of the
ZMRTI was made during the tenure of the GNU. This included the development of
the ZMRTI Oversight Group Charter which defined membership, roles and working
rules. The Oversight Group which had 18 members made up of Government, CSOs and
mining companies was also set up. There was also development of a ZMRTI work
plan for 12-18 months beginning in January 2012. Terms of reference had also
been developed for the Scope and Content of the first ZMRTI Report.
Death of ZMRTI
The GNU ended in July 2013 and this marked the death of the ZMRTI or at least left it in limbo. While the ZMRTI was a product of the GNU, it was mainly driven by the Movement for Democratic Change (MDC) under the ODP. To that end, it was viewed or perceived as an MDC initiative by the incoming government led by Zimbabwe African Union National Patriotic Front (ZANU PF) after the harmonized elections of July 2013. ZANU PF was not supportive of ZMRTI. That perception was very surprising because in asmuch as the ODP was leading ZMRTI, the initiative for all intents and purposes was a product of the GNU. However, while the Government was not supportive of ZMRTI after 2013, it remained interested in transparency and accountability issues in the mining sector. This was based on the economic realities like the need to enhance Domestic Resource Mobilisation (DRM). This thinking was reflected in the policy document / economic blue print that was adopted by the government called the Zimbabwe Agenda for Sustainable Socio- Economic Transformation (ZIMASSET).
Effective DRM to finance ZIMASSET was not
possible in the absence of transparency and accountability. Tellingly, it was the Ministry of Finance and
Economic Development (MFED)that remained interested in transparency and
accountability either in the form of reviving the ZMRTI or through the adoption
of EITI. However, fiscal policy statements muted on implementation of either
EITI or ZMRTI until the interest was reignited in the 2019 National Budget
Statement. It is important to note that
during the tenure of the GNU, it was the MoFED that was in the forefront of
championing a mineral resources governance framework. Then the Ministry was
under the leadership of a Minister from the MDC. However, even under the
leadership of a ZANU PF Minister after 2013, the Ministry remained interested
in transparency and accountability issues.
The move towards adoption of EITI
Of late, we have witnessed renewed efforts by the Zimbabwean Government to adopt the EITI. PWYP campaign and ZELA played a role to reignite this interest through blended advocacy strategies. Both oral and written submissions on the need to revive interest in joining EITI were made to Parliament Portfolio Committee on Mines and Mining Development during pre-budget public consultations. Further, ZELA worked with various media houses including the Zimbabwe Broadcasting Television (ZTV) to ratchet pressure on adoption of EITI. ZELA, also engaged with champions within the MoFED to revive government’s interest to join EITI. Consequently,in 2018, MoFED approached ZELA and indicated the desire of the Government of Zimbabwe to join the EITI asking for guidance and advice on the steps and process of joining. ZELA advised that the first step was a high-level policy statement/ commitment and that the upcoming 2019 National Budget Statement offered that opportunity. The Ministry went on to make that commitment to join the EITI in the 2019 National Budget Statement.
This was followed by the MMMD approaching ZELA
to coordinate a “Dialogue on the prospects of adopting and implementing the
EITI in Zimbabwe”. This request coincided with the holding of the 8th
EITI Global Conference that was held in Paris from the 17-19th of
June, 2019. ZELA, with the support of development partners like United Nations
Development Programme (UNDP) facilitated the participation of the three MMMD
officials including the Permanent Secretary, Mr. Onesimo Mazai Moyo, the Senior
Legal Officer and Minerals Development Officer. During the meeting, the
Government of Zimbabwe officials had an opportunity to meet the EITI
Secretariat. The Permanent Secretary also made some remarks in the closing
plenary, reiterating Zimbabwe’s desire to join the EITI.
The EITI Global Conference was followed by a
meeting organized by ZELA in collaboration with the MMMD to explore the
prospects of Zimbabwe joining the EITI. The meeting was held on the 15th
Its objective was to sensitize stakeholders on what the EITI was about and how
Zimbabwe can join and the advantages and disadvantages thereof. The meeting was
supported by GIZ, Oxfam and UNDP. The resolutions from the meeting were as
for a political declaration / commitment by the Government that Zimbabwe is
joining the Extractive Industries Transparency Initiative
much bigger consultation is needed where Government comes with its own analysis
of the benefits of joining EITI. This should be undertaken by the relevant
must hold EITI Inclusive consultative meetings and get more stakeholders on
board. The EITI process might be the same in the countries but application can
to simplify the EITI Standard and share this with different stakeholders
to know who will comprise the EITI Board especially ensuring that those people
The July 15 meeting was followed by a meeting
held from the 2nd-3rd of October, organized by the MMMD
with support from GIZ. This meeting was attended by the EITI Secretariat. The
objectives of the meeting were as follows:
efforts towards building a common understanding of EITI drawing on expertise of
the EITI Secretariat and other experts
comprehensive understanding of the implications of Zimbabwe joining the EITI
against the sanctions imposed under the Zimbabwe Democracy and Economic Recovery
up with clear, tangible steps on the next steps towards adoption and
implementation of the EITI or a clear road map
Drivers for government
to join EITI
of principles: The Constitution and EITI
The 2013 Constitution, the supreme law contains provisions which resonate well with EITI principles. Basically, the constitutional provisions on transparency and accountability gives government the impetus to join EITI. It has strong provisions on transparency and accountability including in the mining sector. Section 9 of the constitution provides for good governance. It provides that “the State must adopt and implement policies and legislation to develop accountability, transparency and financial probity”. This applies to natural resources governance including the mining sector. It further calls for measures to be taken to expose, combat all forms of corruption and abuse of power by those holding political and public office.
The constitution also makes provisions for
access to information by affected and interested stakeholders as long as that
information is required in the interest of public accountability.
There is a lot of interest for accountability within the mining sector. Section
85 expands the locus standi and this further enhances transparency and
accountability. The constitution also establishes Principles of Public
It calls for transparency and accountability in financial matters. Furthermore
, its makes provisions for procurement and other governmental contracts.
It calls for an Act of Parliament that prescribes procedures for the
procurement of goods and services by the State and all institutions and
agencies of government so that procurement is effected in a way that is
transparent , honest, cost effective and competitive.
In addition , it calls for the enactment of an Act of Parliament to provide for the negotiation and performance
of the following contracts :
venture contracts and concessions of minerals and other rights to ensure transparency,
cost effective and competitiveness.
The constitution also calls for the
establishment of institutions to combat corruption like the Zimbabwe Anti-Corruption
All these constitutional provisions on transparency and accountability,
establishes a strong foundation for the continued interest to develop and adopt
mineral resources governance frameworks that promote transparency and
is open for business
To attract essential foreign
direct investment (FDI), government is on a rebranding exercise throughthe new
mantra “Zimbabwe is open for business.” A quite simply appealing message. If
Zimbabwe is surely open for business, certainly, what stops government from
being open about the business of mining sector transparency in this case. Therefore, government must embrace policy
reforms to show openness in a sector general perceived locally and globally as
murky. One important area of reform is implementation of EITI, an initiative
regarded as a global best practice on openness and accountable governance of
oil, gas and mining industries. By so doing, government will be sending a clear
message to the international community and its citizens, the Zimbabwe open for
business mantra is not a fluke.
- The quest to re-engage with International Financial Institutions (IFIs)
To move the country away from isolation and to unlock access to finance for development, government is prioritising engagement with International Financial Institutions (IFIs). The IFIs include International Monetory Fund (IMF) and the World Bank. In this bid, government must prove seriousness on enhancing its domestic resources mobilisation (DRM) capabilities. A move which helps to justify the importance of external support to the country’s socio-economic development thrust. Because Zimbabwe is a mineral rich country, demonstrating the nexus between mining and DRM is critical. Without transparency, leveraging mining sector for DRM will prove to be a daunting exercise. In the past, government, as part of the IMF’s staff monitored programme (SMP) managed to publicly disclose audited annual reports for the Zimbabwe Mining Development Corporation (ZMDC). By implementing mining sector transparency reforms in the form of EITI, government will be adopting a proactive stance to improve resource governance.
,United Kingdom and Canada’s mandatory disclosure requirements
Data on various payments made to
government by major mining companies operating in Zimbabwe which are either
registered or listed in EU, UK and Canada is already in the public domain. Such companies include Caledonia’s Blanket
Mine which promotes tax revenue transparency because of Canada’s Extractive
Sector Transparency Measures Act (ESTMA). Anglo-American owned Unki Mine, for
example, is disclosing information on payments made to government at the behest
of the EU accounting directive. Given this important ventilation of Zimbabwe’s
mining sector, government must be encouraged to entirely open the mining sector
for greater public accountability. Importantly, government once angled for
local primary listing of all companies in the mining sector as part of the
amendments to the Mines and Minerals Act through the Mines and Minerals
Amendment Bill. Of course, this was dropped due to pressure from investors who
felt that the domestic market does not have capacity to mobilise investment
capital. However, another important objective of achieving good governance in
the mining sector, greater transparency and accountability suffered as a result
because listed companies have a high corporate governance compliance bar. This
noble objective can still be achieved if government implements EITI.
lessons from scandalous management of Marange diamond fields
Conceding that the nation missed
out from a getting a fair share of benefit from the exploitation of Marange
diamonds, to bring better transparency and accountability, government embarked
on consolidation of the diamond mines.
All the seven mines that were operating in Marange and DTZ OZGEO, operating in
Chimanimani were given a boot in 2016.
The Zimbabwe Diamond Consolidated Company (ZCDC) took over the diamond
Marange diamond mining activities. Among its several objectives, ZCDC seeks to
ensure transparency and accountability in the diamond mining sector and to
enhance diamond mining fiscal linkages. A holistic approach is needed to
deliver greater transparency to the mining sector instead of an ad hoc approach
to governance challenges in the sector. By adopting EITI, government will cover
all mineral sectors, all mining players, public and private, on greater
transparency and accountability.
recognize the convergence of principles between the Constitution and EITI as an
opportunity to adopt EITI, a globally acceptable standard which enables
alignment of laws with the Constitution.
- must take
the opportunity to embrace EITI to strengthen its rebranding exercise, the
Zimbabwe is open for business agenda. EITI will enable government to prove its
willingness to be open about business in the mining sector.
- must build
raptured public trust and confidence in its stewardship role in the governance
of mineral resources by implementing EITI, opening the mining sector using a
globally acclaimed framework.
implement EITI as a holistic approach to transparency and accountability
challenges facing the mining sector in Zimbabwe.
- PWYP must
reinvigorate its advocacy campaign strategy to ensure government’s renewed
interest to join EITI does not go to waste as witnessed in the past since 2011.
interest among stakeholders, government, industry and civil society offers a
great opportunity for the implementation of EITI in Zimbabwe. Although there
are several drivers for implementation of EITI in Zimbabwe, the ignition factor
is the convergence of Constitutional and EITI principles. By adopting EITI,
Government gets a clout to convince skeptics of the Zimbabwe is open for
business agenda, who decry lack of openness and accountability of the mining
sector. Past lessons from poor exploitation of Marange diamonds are a reminder
to government. Vision 2030 and the Transitional Stabilisation Plan (STP) driven
by the development of the mining sector can easily be scuttled because of lack
of transparency. Whilst government’s reignited interest in join EITI is a plus
on civil society advocacy, the work has just begun. In the past, government’s
repeated commitment to implement EITI or revive ZMRTI yielded nothing on the
ground. For this to work this time around, the approach must be reinvigorated,
a nimble advocacy strategy is a must to hold government and corporates more to
account on adoption and implementation of EITI.
 Zimbabwe Environmental Law
Treasury, 2019 Mid Term Budget Review and Supplementary Budget, page 88.
 Isaac Kwesu, Chief Exectutive
Officer of the Chamber of Mines of Zimbabwe . State of Mining Survey Report ,
 Government of Zimbabwe 2018. Towards
an Upper Middle Income Economy by 2030.
 Global Witness, 2012. Diamonds: A good for Zimbabwe? Who controls
revenues from Marange Diamonds Fields: A case study of Mbada and Anjin
Artisanal and small-scale miners raised concern on lack of transparency and
accountability on allocation of exclusive prospecting orders. This was raised
during the breakaway session on ASM at the 8th edition of the
Zimbabwe Alternative Mining Indaba.
There is not Act of Parliament to guide negotiation and performance of mining
contracts as required by the Constitution, Section 315 (2) (c).
the gold sector for instance, data used by policy makers is on gold deliveries
to government and production figures are barely disclosed.
Revenue performance reports generated by the Zimbabwe Revenue Authority, the
country’s tax collector does not show mining sector performance per each
revenue head, corporate tax, value added tax, customs duty, pay as you earn,
withholding tax. The only distinct mining revenue head disclosed is income from
The budget rarely earmarks revenue streams for enhancing sustainability
required by the constitutional principles on public financial management, for
instance, intergenerational sharing of wealth.
 Zimbabwe Environmental Law
Association, 2011. Sowing the seeds of
advocacy work on transparency and accountability in the extractive sector in
 Members of the Publish What You Pay
Coalition are Zimbabwe Environmental Law Association , Women and Land in
Southern Africa , Transparency International Zimbabwe , Zimbabwe Coalition on
Debt and Development , Center for Natural Resources Governance, Institute for
Sustainability in Africa , Povervty Reduction Forum Trust , Zimbabwe Allied
Diamond Workers’ Union , Mutoko Youth Initiative and Chiadzwa Community
 Rodget Mpande and Benson Zizwai ,
2010. Zimbabwe scoping study report on Extractive Industries Transparency
Initiative. A study commissioned by the
Zimbabwe Environmental Law Association
 Chapter 21:05
 Government of Zimbabwe, 2011. Medium
Term Plan 2011-2015.
 Thabani V.Mpfofu. Principal Director
Research and Development, Office of the Prime Minister. Why the Zimbabwe Mining
Revenue Transparency Initiative (ZMRTI)? How it will be structured and
 Zimbabwe Environmental Law
Association, 2019. Zimbabwe’s move to adopt the Extractive Industries
Transparency Initiative commendable
Government of Zimbabwe , 2019 National Budget Statement. Mining Transparency ,
paragraphs 526- 532
 Mutuso Dhliwayo and Joyce Machiri,
2019. Momentum for the adoption of the
Extractive Industries Transparency Initiative builds in Zimbabwe.
 Ministry of Mines and Mining
Development and Zimbabwe Environmental Law Association, 2019. Report on Dialogue on the prospects of
adopting and implementing the EITI in Zimbabwe.
 Section 98
 Section 315
 Section 315(1)
 Section 315 (2) (a)(c)
Treasury, 2015 National Budget Statement, page 32