HARARE - Zimbabwe's mining sector could yield up to 16 billion dollars if the government can create the right climate for foreign investment, Prime Minister Morgan Tsvangirai told industry leaders Thursday.
"Zimbabwe's mining sector presents the most immediate opportunity to attract significant investment for economic development," Tsvangirai told the final day of a mining conference in the capital.
The government, and mining industry, had "a window of opportunity" to prepare a conducive policy environment by mid-2010, that could attract between six and 16 billion dollars in investment during 2011-2018, he said.
"Thereafter we could rationally target an increase to GDP exceeding three billion dollars per annum arising from such investment."
Key issues were a rational royalty scheme and corporate tax with competitive incentives, de-regulation of minerals marketing which had already started with gold sales, and respect for mining title, he said.
The introduction of multiple currencies at the start of the year, after the hyperinflation-battered local dollar was abandoned, has provided stability and was likely to remain for the foreseeable future, he said.
"We must acknowledge that many of the problems that we have faced historically and continue to face today are home made," said Tsvangirai, adding that there was no international conspiracy against the country.
"The sooner that all the parties that comprise this inclusive government accept this fact and start dealing with the real causes of the challenges facing our nation, the sooner that we will be able to deliver real change."
President Robert Mugabe, Tsvangirai's partner in a unity government, has repeatedly alleged that Zimbabwe's economic woes were the result of interference from Harare's enemies.
Tsvangirai said Zimbabweans had to benefit from mining, which should be done "fairly, transparently and in line with accepted international norms".
But he said the government must also investigate human rights abuses, allegedly at the hands of the army, at the Marange diamond fields.
The two-day mining conference was attended by 850 foreign investors.
Mineral-rich Zimbabwe was once a prime source of gold, platinum, chrome and dozens of other metals, but most mines have run down their operations because of the high cost of doing business here.
Mining accounts for 3.8 percent of Zimbabwe's GDP, about 4.5 percent of employment and a third of total foreign exchange earnings based on 2007-2008 output.
//afp/