Coal market in Zimbabwe

Earlier Report Observations

Coal production in Zimbabwe declined from 3.3 million tons in 2018 to 2.7 million tons in 2019, then stabilized around 2.8 million tons in 2020. Growth resumed in 2021, reaching 3.2 million tons, and accelerated to 4.0 million tons in 2022. This recovery was driven by government investments into coal mining and coke oven batteries, which realized US$92.1 million in 2021. In 2022, investments expanded by 81% to US$166.4 million, funding the construction of new coke oven batteries and expansion at South Mining and Dinson Colliery.

The increase in production was accompanied by a sharp rise in exports, which grew from 98 thousand tons in 2018 to 449 thousand tons in 2022. This was part of a strategic pivot toward exports, capitalizing on high industrial demand in regional markets like South Africa and the DRC. Government policy promoted the establishment of coke oven batteries as a prerequisite for coal mining titles, encouraging production of higher-value coke and coking coal for metallurgy. Major projects such as the Hwange power units 7 and 8 came online in 2023 following a US$1.5 billion investment, further boosting coal demand.

State-owned Hwange Colliery Company played a key role, reducing coal prices in 2022 to combat deforestation while new coal mining companies commenced operations. The entry of new players and the resumption of operations by Makomo Resources added to national supply. The sector saw continued expansion through 2024, supported by ongoing investments and high demand for coke in local and regional markets.

Production coal in Zimbabwe

In kind, 2017-2020, K t

Top producers of coal, 2017-2020

World map of production of coal, 2017-2020

Zimbabwe's coal production reached 2 751 thousand tonnes in 2020, showing a modest year-over-year increase of 0.8%. Looking at the broader period from 2017 to 2020, production actually declined by 6%, with an average annual decrease of 2.1%. The lowest production level was recorded in 2019 at 2 730 thousand tonnes, while the peak occurred in 2018 with 3 348 thousand tonnes. The most significant production drop happened in 2019 at 18.4%, whereas the largest increase was observed in 2018 with a 14.3% rise.

Annual dynamics of production in Zimbabwe in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Zimbabwe's coal production value continued its downward trend for the second consecutive year. In 2020, coal output was valued at 72.9 million US dollars, representing a substantial 27.5% decline compared to the previous year. Over the 2017-2020 period, production value decreased by 41%, translating to an average annual decline of 16.1%. The highest value was recorded in 2018 at 128.3 million US dollars, which also saw the largest increase of 3.9% during this timeframe.

Annual dynamics of production in Zimbabwe in value, 2017-2020, M $ US

Exports coal from Zimbabwe

Exports in kind, K t

Zimbabwe's coal exports continued to grow for the third consecutive year. In 2020, the country exported 190.5 thousand tonnes of coal, marking a significant 66.2% increase compared to 2019. Between 2017 and 2020, export volumes surged by 281.4%, equivalent to an impressive annual growth rate of 56.2%.

Annual dynamics of product's exports from Zimbabwe in kind, 2017-2020, K t

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Zimbabwe in kind, 2017-2020

Exports in value, K $ US

Zimbabwe's coal export revenues maintained their upward trajectory for the third straight year. In 2020, export value reached 5 047 thousand US dollars, showing a robust 19.5% increase from 2019. From 2017 to 2020, export values grew by 139.4%, representing an average annual growth rate of 33.8%.

Annual dynamics of product's exports from Zimbabwe in value, 2017-2020, K $ US

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Zimbabwe in value, 2017-2020

Imports coal to Zimbabwe

Imports in kind, K t

Zimbabwe's coal imports continued to decline for the third consecutive year. In 2020, the country imported just 0.4 thousand tonnes of coal, representing a dramatic 96.7% decrease compared to 2019. Over the 2017-2020 period, import volumes plummeted by 98.9%, with an average annual decline of 77.9%.

Annual dynamics of product's imports to Zimbabwe in kind, 2017-2020, K t

Between 2017 and 2020, Zimbabwe's coal imports were heavily concentrated on Botswana, which accounted for 84.3% of total import volumes. Other trading partners represented the remaining portion of imports during this period.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Zimbabwe in kind, 2017-2020

Imports in value, K $ US

The market exhibited considerable volatility during these years. Import values reached their peak in 2018 at 2 601 thousand US dollars and fell to their lowest point in 2020 at 85 thousand US dollars, representing a 31-fold difference between these extremes. In 2020, coal imports to Zimbabwe totaled 85 thousand US dollars, reflecting an 88.6% decline from 2019. The largest increase occurred in 2018 with a 19.5% rise.

Annual dynamics of product's imports to Zimbabwe in value, 2017-2020, K $ US

Throughout the 2017-2020 period, Botswana dominated Zimbabwe's coal imports in value terms, capturing 80.8% of total import value. Other trading partners maintained relatively smaller shares of the import market.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Zimbabwe in value, 2017-2020