In a strategic move that underscores Zimbabwe’s rising prominence in Africa’s mining resurgence, Kavango Resources Plc has secured a US$5 million interest-free facility from the Comarton Managed Pension Funds’ Investments Consortium. The funding is poised to unlock a new era of mine development and gold processing infrastructure in Zimbabwe, supporting both national economic goals and the company’s path toward listing on the Victoria Falls Stock Exchange (VFEX).

This pivotal investment not only strengthens Kavango’s foothold in the country’s gold sector but also signals renewed investor confidence in Zimbabwe’s mining landscape. It is particularly significant in a country where gold remains the single largest foreign currency earner and a key pillar of economic recovery.

A Transformational Step for Kavango and Zimbabwe

Kavango Resources, a London-listed exploration company, has increasingly turned its focus toward the African continent, recognizing Zimbabwe as a high-potential yet underexplored mining destination. The newly secured funds will primarily go toward the construction of a gold processing plant and fast-tracking the development of three priority prospects — Prospects 1, 3, and 4 — under the company’s Hillside Project in Matabeleland.

Ben Turney, Kavango’s Chief Executive Officer, hailed the transaction as a watershed moment for the company and for Zimbabwe’s investment climate. “This sends a clear message that Zimbabwe is open for business,” Turney stated. “We look forward to this investment acting as a cornerstone for our introduction to the Victoria Falls Stock Exchange a little later this summer.”

Turney emphasized Kavango’s commitment to inclusive development and local empowerment, noting that the company’s strategy promotes local shareholder participation. “It’s critical that Zimbabweans share in the success we hope to create here,” he added.

Strategic Support from Zimbabwe’s Pension Sector

The US$5 million interest-free facility comes from a consortium of 28 pension funds under the umbrella of Comarton Consultants (Private) Limited. This group of institutional investors has recently diversified its portfolio to include mining, building on previous investments in property, tourism, and agriculture. Their entrance into mining signifies growing faith in Zimbabwe’s mineral sector reforms and the country’s long-term growth trajectory.

Comarton Managing Director Richard Muirimi described the partnership with Kavango as a “logical and exciting step” in the group’s investment evolution. “This partnership allows us to anchor part of our portfolio in hard currency, generate stable returns, and support the growth of sustainable local enterprises that contribute to employment creation and economic diversification,” said Muirimi.

The structure of the investment — a convertible loan note — allows Kavango to draw funds in three tranches over a 12-month period. The first tranche of at least US$500,000 in USD is available immediately, while the second tranche (US$1.5 million) is denominated in Zimbabwe Gold (ZiG), the country’s newly launched gold-backed currency, which will be converted to USD through official central bank mechanisms. The final US$3 million tranche, also in USD, is scheduled for drawdown later this year.

Zimbabwe’s Golden Ambitions

The deal aligns with Zimbabwe’s ambitious national gold output target of 40 tonnes in 2025 — a sharp rise from the 36.48 tonnes produced in 2024, itself a record-breaking figure. Gold, which accounted for over 30% of export revenues in 2024, remains central to the country’s economic revival plan amid ongoing efforts to re-engage with international financial institutions and attract sustainable foreign investment.

Zimbabwean authorities have been proactive in improving the regulatory framework governing mining. The Mines and Minerals Bill, which is currently under review in Parliament, aims to provide clearer mining titles, improve transparency, and ensure equitable benefit sharing. These steps are critical to ensuring the long-term viability of projects such as Kavango’s Hillside Project.

In July 2023, Kavango Zimbabwe — the local operating arm of the parent company — was formally established to facilitate exploration and mine development in Zimbabwe. The company has since acquired several historically significant gold assets in Matabeleland, an area known for its rich but largely untapped gold deposits.

The Hillside Project, located in an area with extensive artisanal mining history, offers both open-pit and underground mining opportunities. Kavango plans to employ modern mechanized mining techniques to improve efficiency, reduce environmental impact, and enhance worker safety.

Mechanised Mining and Processing: A Step Change

One of the biggest challenges for junior miners operating in Africa is the high cost and logistical complexity of establishing processing infrastructure. The US$5 million from Comarton will be instrumental in constructing Kavango’s first gold processing plant in Zimbabwe. The facility will significantly reduce the company’s reliance on third-party processing, improve margins, and provide a local beneficiation advantage.

“Having our own processing plant gives us more control over quality, costs, and environmental compliance,” said Turney. “It also shortens the time from discovery to revenue generation, which is essential for our growth strategy.”

Zimbabwe’s mining sector is characterized by a proliferation of small-scale and artisanal miners, many of whom lack access to formal processing facilities. By creating processing capacity in Matabeleland, Kavango could also play a role in formalizing and supporting small-scale operations in the region — a move that would align with the government’s broader push to mainstream artisanal mining into the formal economy.

The Victoria Falls Stock Exchange Listing: A Game-Changer?

Kavango’s proposed listing on the Victoria Falls Stock Exchange (VFEX), Zimbabwe’s US dollar-denominated stock exchange launched in 2020, represents another bold step in the company’s African journey. VFEX was created to attract foreign investment and restore investor confidence in Zimbabwe’s capital markets by offering regulatory flexibility, tax incentives, and protection against local currency volatility.

Listing on VFEX would not only allow Kavango to tap into fresh capital for expansion but would also align the company with Zimbabwe’s vision of transforming the VFEX into a regional financial hub.

“This listing will give us a dual advantage — access to international capital while remaining rooted in local operations,” said Turney. “It also signals our long-term commitment to Zimbabwe and the Southern African region.”

Growing Investor Confidence

Zimbabwe’s mining sector is beginning to attract international players once again, thanks to a combination of mineral wealth, reform-oriented policy shifts, and increasing commodity prices. The government’s “Zimbabwe is Open for Business” mantra is gradually gaining traction as political and economic reforms continue, albeit unevenly.

Recent investments in lithium, platinum, and chrome by multinational firms have added to the growing optimism. With the country now focusing on gold, the success of projects like Kavango’s Hillside operation could act as a benchmark for future mining investments.

Comarton’s involvement is particularly noteworthy. Pension funds typically adopt conservative investment strategies, prioritizing long-term stability and guaranteed returns. Their backing of a junior exploration company speaks volumes about the changing perception of risk in Zimbabwe’s mining sector and the maturity of its local financial institutions.

Local Development and Employment Impact

Beyond profits and processing plants, Kavango’s Zimbabwean venture is expected to generate significant socio-economic impact. The company estimates that the Hillside Project alone could create over 300 direct jobs and several hundred indirect employment opportunities in services and supply chains.

Moreover, the project will contribute to skills development through vocational training partnerships and on-the-job learning, addressing one of Zimbabwe’s most pressing challenges — youth unemployment.

As part of its community engagement strategy, Kavango has committed to conducting thorough Environmental and Social Impact Assessments (ESIAs) and adhering to global best practices in sustainability and corporate responsibility.

“We want to build not just a mine, but a legacy of shared value,” Turney emphasized.

A Golden Future?

While challenges remain — including fluctuating commodity prices, power shortages, and bureaucratic hurdles — Zimbabwe’s mining sector is steadily inching toward revival. Strategic partnerships like that of Kavango and Comarton serve as powerful case studies of what is possible when vision, capital, and local commitment align.

Kavango Resources now stands at a critical juncture. With financing secured, a robust local partnership in place, and a listing on the horizon, the company has a real shot at turning Zimbabwe’s untapped gold potential into tangible economic value.

As Turney aptly put it, “This is just the beginning. We believe Zimbabwe’s best mining days are ahead — and we’re excited to be part of that journey.”

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photo source: Google

By: Montel Kamau

Serrari Financial Analyst

24th April, 2025