JOHANNESBURG — At the Investing in African Mining Indaba, Karo Mining managing director Bernard Pryor drew attention to what he described as a continuing disconnect between the operational strengths of Zimbabwean mining projects and how international lenders assess risk.
Speaking during a panel discussion, Pryor argued that the central challenge facing developers is less about asset quality and more about investor sentiment.
“We’re all sitting here, we know the reality,” Pryor said. “The perception of lenders is quite often the reverse. That perception versus reality is a problem.”
Pryor explained that lenders typically divide their analysis into two broad areas: project-level fundamentals and macroeconomic stability. On technical and operational criteria, he said, Zimbabwean mining ventures frequently perform well.
“Lenders look at the project side — the resource, water, skills, and power. On that front, Zimbabwe projects tick the boxes,” he said. “We can sell that very easily on the project side.”
Zimbabwe remains one of the world’s significant platinum group metals (PGM) producers, underpinned by strong geological potential, competitive labour costs, and decades of mining expertise. Industry analysts note that the country’s mineral endowment continues to attract strategic interest, particularly amid sustained global demand for PGMs.
However, Pryor stressed that financing decisions extend beyond technical viability.
“Banks also look at another side — fiscal and currency stability,” he said. “Lenders need fiscal stability so that they’re going to get their money back, and then their goalposts don’t move.”
Karo Mining, which is developing a platinum project in Selous, has invested approximately US$193 million into the venture to date. The company is now seeking US$178 million in bank-led project finance to advance the mine toward full production.
In a move reflecting broader shifts within Zimbabwe’s capital markets, Karo raised US$37 million through the Victoria Falls Stock Exchange (VFEX), Zimbabwe’s US dollar-denominated exchange designed to attract offshore investors and reduce exposure to local currency volatility. Market observers say the VFEX is increasingly being viewed as a strategic funding avenue for companies operating in the country, offering issuers access to hard-currency capital while providing investors with a degree of protection from exchange rate risks.
Once completed, Karo is expected to become Zimbabwe’s third-largest platinum producer, potentially reinforcing the country’s position within the global PGM supply chain.
The discussion at Mining Indaba echoes a wider debate across frontier and emerging markets, where strong project fundamentals often compete with elevated perceptions of sovereign risk. Zimbabwe’s mining sector has attracted renewed attention amid global demand for platinum, lithium, and gold, yet international lenders continue to apply cautious risk pricing.
Financial institutions evaluating Zimbabwean projects frequently weigh factors such as currency convertibility, policy predictability, fiscal discipline, and broader governance considerations. Analysts note that even technically sound and commercially attractive projects may face higher borrowing costs or protracted financing timelines when macroeconomic concerns dominate lending decisions.
Karo’s project also includes a 15% free-carry stake held by the Zimbabwean government, a structure that remains a point of discussion among investors. While state participation is often framed as aligning national and commercial interests, some investors argue that such arrangements can influence project economics and financing structures, particularly in environments where policy stability is closely scrutinised.
Despite these challenges, Pryor’s remarks suggest that investor interest in Zimbabwe’s mining sector remains intact.
“The underlying assets are not the issue,” a mining finance specialist attending the Indaba commented. “The question is whether lenders gain sufficient confidence in the operating environment over the life of the loan.”
With platinum markets closely linked to automotive demand, industrial applications, and emerging hydrogen technologies, Zimbabwe’s PGM sector is expected to retain strategic importance. Narrowing the gap between investor perception and economic fundamentals may prove critical in unlocking larger pools of international capital for future mining developments.
