ZIMBABWE, which hosts rare earth minerals, can ideally position itself as a creator of artificial intelligence (AI) technology rather than remain as a mere consumer, experts have said.
Rare earth minerals are used to produce advanced hardware such as high-speed processors, powerful semiconductors and efficient data centre cooling systems.
They include gallium for chips, neodymium for magnets in motors and cooling and dysprosium for heat resistance in magnets.
"To achieve this, there is a need for Zimbabwe to focus on three key areas: using AI systems, building AI systems and getting involved in the hardware.
"The Government needs to come up with an AI vision, strategy and implementation matrix in order to align with the AI revolution," said Professor Arthur Mutambara during a recent CBZ thought leadership seminar on AI and trade finance.
With widening internet penetration and a young population with digital skills, he said, Zimbabwe was poised to benefit from the AI revolution.
"By investing in AI technology, rare earth minerals and energy infrastructure, the country can unlock its economic potential and become a major player in the global AI industry."
Prof Mutambara said the envisaged increased power output from various renewable power plants and the Muzarabani oil and gas project will provide ample energy to run data centres.
AI data centres have extremely high energy demands, with facilities requiring upwards of 2 000 megawatts (MW).
The demand is driven by AI's power-intensive processing and results in significant overall energy consumption, which is projected to double by 2030 to about 3 percent of global electricity use.
"The AI revolution is driven by critical minerals and rare minerals. That is why the United States is making deals with Ukraine, Rwanda and DRC (Democratic Republic of Congo). We have 25 percent of global critical minerals. Why don't we sit together as African countries and say to Taiwan Semiconductor Manufacturing Company and NVIDIA, 'Can we negotiate?'" he said.
Zimbabwe's rare earth mineral sector has in recent years attracted interest from investors.
Rainbow Rare Earths, listed on the London Stock Exchange in 2019, recently acquired 10 rare earth mining claims in Zimbabwe.
"Zimbabwe, on its part, despite being rich in the minerals, is yet to invest in exploration and beneficiation of these minerals; hence, global miners are capitalising on the country's resources to supply leading AI hardware makers like NVIDIA and Taiwan Semiconductor Manufacturing Company," said Prof Mutambara.
However, the Government recently said it is in the process of crafting a policy for the exploration and exploitation of rare earth minerals.
Speaking at the same seminar, African Export-Import Bank (Afreximbank) director of clients Mr Andrew Masuwa said the institution had a facility that is targeted at young professionals who have bright ideas and are willing to embark on large projects.
"On AI creation and technology development, we are saying to these young, bright minds coming out of our polytechnics and universities that they need to have a chance at seeing their ideas being put to the test, and that is what we do through our engineering and professional services facility," he said.
CBZ Holdings chief executive officer Mr Lawrence Nyazema highlighted the importance of the Muzarabani oil and gas project in providing sufficient energy capacity for data centres to sustain the AI revolution.
"What is important is for us not just to use the AI that has been created elsewhere in other places; we need to be at the centre of the creation of AI that talks to our values and ethos as a country," he said.
"We already have raw ingredients such as energy and the potential oil project that is coming through Invictus Energy."
He noted that universities, including Midlands State University, National University of Science and Technology, University of Zimbabwe and Harare Institute of Technology, have the human resources and digital skills required to support the AI industry.
"The only missing link is capital, which investors are willing to provide. The AI global capital is now almost US$4,5 trillion, and Zimbabwe cannot afford to ignore that," he said.
The AI chip market was valued at US$20 billion in 2020 and is projected to exceed US$300 billion by 2030.