Zimbabwe and South Africa Announce Mineral Policy Changes and Automotive Incentives
Zimbabwe's government has classified minerals into critical, special critical, and strategic categories to enhance resource management. Meanwhile, South Africa is proposing reforms to its automotive incentive scheme to support local EV battery production and mineral processing, aiming to bolster its automotive sector amid rising competition and production costs.
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Zimbabwe has established a classification system for minerals, categorizing them as critical, special critical, or strategic to enhance planning and exploitation. Critical minerals include lithium and cobalt, while metallurgical coal and limestone are labeled special critical and strategic, respectively.
In South Africa, proposed amendments to the Automotive Production and Development Programme aim to increase production credits for EV battery manufacturers, raising the eligible materials' proportion from 25% to 50%. This is part of a strategy to reposition the automotive sector towards new-energy vehicles.
The local manufacturing sector is under pressure from rising costs and competition, necessitating these reforms. Companies like Toyota and Volkswagen have urged policy interventions to improve competitiveness.
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