Zimbabwe, endowed with some of Africa’s largest lithium reserves, primarily located in the Bikita, Arcadia, and Zulu-Lower Gweru regions, has emerged as a focal point for global lithium extraction and investment. At the heart of this lithium rush has been the acquisition of lithium mining and exploration rights by international actors, with Chinese companies in particular, acquiring the largest portfolio of lithium mining projects in Zimbabwe. While foreign direct investment (FDI) in the lithium sector presents Zimbabwe with opportunities for economic diversification and infrastructural development, it has also raised important governance challenges that threaten the sustainability and equity of lithium resource exploitation. 

Our case study analysed the corruption and governance risks in Zimbabwe’s lithium sector, bringing particular attention to risks in the awarding of prospecting licenses. In part, owing to the Sino-Zimbabwean international relations framed along the ‘Look East Foreign Policy’, preferential treatment can be seen being given towards Chinese companies over the last decade. Seven large lithium projects have been established in Zimbabwe with Chinese influence, controlling a major share of lithium production. The study looked into investment frameworks through which Chinese companies have entered in the lithium sector in Zimbabwe. These have included direct acquisition of existing companies, the establishment of joint ventures and partnerships with local elite and through substantial investment into key stages of the value chain, such as lithium processing plants.  

The study identified five key corruption risks, that are likely to give rise to opportunities for corruption. Risks discussed included revisions of the awarding of licenses processes, which can create opportunities for corruption to facilitate or speed up processes. In some cases, high-level political actors have been seen exerting undue influence in the process as well. Risks also include issues in consultation to local communities and the implementation of environmental and social impact assessments, which can result in serious consequences for transparency, environmental protection, and the rights of local communities. A culture of rent-seeking behaviour within public sector officials was reported in regards to mining licensing and approvals.