Zimbabwe, Africa’s largest producer of lithium, is exploring a resource-backed financing agreement with China that would use future mineral revenues to fund the construction and rehabilitation of key infrastructure, including roads and railways.
Finance Minister Mthuli Ncube disclosed that discussions are underway with Chinese partners to develop a financing model in which proceeds from the country’s vast lithium reserves would help repay loans for large-scale infrastructure projects. The move comes as Zimbabwe struggles with ageing transport networks that have long hindered economic growth and mineral exports. According to the African Development Bank, the country requires an estimated $34 billion to modernise its transport and logistics infrastructure.
The proposed arrangement coincides with China’s expanding footprint in Zimbabwe’s mining sector. Since 2021, Chinese companies have invested more than $2 billion in the country’s lithium industry, strengthening Beijing’s influence over one of the world’s fastest-growing battery mineral supply chains.
Zimbabwe is also pressing ahead with plans to ban exports of lithium concentrate from January 2027, despite calls from some industry stakeholders for a delay. The government says the policy is intended to encourage local processing and value addition, ensuring the country earns more from its mineral resources instead of exporting raw materials. New lithium-processing facilities are already being developed by Chinese-backed mining firms to support the transition.
Officials believe improved rail and road infrastructure will not only boost the mining sector but also strengthen trade, lower transport costs, and accelerate broader economic development as Zimbabwe positions itself as a key player in the global electric vehicle battery supply chain.
