Zimbabwe’s nickel mining sector has suffered a sharp collapse, with export earnings falling to US$103 million in 2025, down from more than US$1 billion just three years earlier, highlighting mounting pressure from weak global prices and domestic production constraints.
Export data for the January to November 2025 period shows a steep and sustained decline in nickel ore and concentrate shipments, reversing gains recorded earlier in the decade.
Export earnings stood at US$957 million in 2021 and rose to US$1.016 billion in 2022, before sliding to US$610 million in 2023 and US$426 million in 2024, culminating in this year’s sharp contraction.
The 2025 performance represents a decline of nearly 90 percent from the 2022 peak, raising concerns over the sector’s viability, investment outlook, and Zimbabwe’s competitiveness in the global nickel market.
The slump has coincided with a prolonged downturn in international nickel prices. Average global prices in 2025 have hovered around US$15,000 per tonne, significantly lower than levels above US$30,000 per tonne recorded in early 2022, when supply disruptions and strong demand tightened global markets.
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Global market conditions have since shifted, with expanded production—particularly from Asia—leading to oversupply. While demand from stainless steel manufacturing and battery production has remained steady, it has not been sufficient to absorb rising output, keeping prices subdued and margins compressed.
For Zimbabwean producers, the impact has been compounded by high operating costs, power supply challenges, limited capital investment, and ageing infrastructure.
These factors have eroded profitability and curtailed output at a time when international prices offer little relief.
At its peak, Zimbabwe ranked among Africa’s leading nickel exporters, with the mineral contributing significantly to foreign currency inflows and overall mining sector growth.
The current downturn, however, has weakened export earnings and heightened concerns over employment, fiscal revenues, and the long-term sustainability of nickel operations.
Although long-term global demand for nickel is expected to grow—driven largely by electric vehicle batteries and energy storage technologies—these trends have yet to translate into a sustained price recovery.
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