Story by Bruce Chahwanda, Political Editor
ZIMBABWE is aiming to reach US$15 billion in foreign currency earnings this year, driven by rising international gold prices and government-led reforms that have improved the ease of doing business and boosted export performance.
The country has already recorded a strong performance, with foreign currency inflows reaching US$10.4 billion in the first eight months of the year, setting the pace for meeting the ambitious year-end target.
The figure reflects an over US$2 billion increase in foreign currency earnings from the same period last year.
CEO Roundtable Chief Executive Officer, Mr Kipson Gundani, said the ever-increasing prices of the yellow metal on the international market must encourage miners to ramp up production for the country to achieve a target of US$15 billion by the end of the year.
“Productivity is key towards boosting foreign currency earnings, especially in gold, where prices on the international market are very attractive. If we ramp up production, it means good for this economy. The numbers posted by RBZ are impressive, hence the need to maintain the momentum through increased production,” he said.
The Second Republic, under the leadership of President Emmerson Mnangagwa, has been vocal about the need to focus on production and productivity, and the results are there for everyone to see.
Harnessing of diaspora remittances has been another factor being championed by the government to ensure diaspora bonds are utilised for infrastructure development.
For Chairperson of the Parliamentary Portfolio Committee on Industry and Commerce, Honourable Clemence Chiduwa, the government has created an enabling environment for exporters to thrive, and this trajectory must be sustained.
“The improvement in earnings is a testament to the increased production activity, especially within the Gold and Platinum subsectors, which anchor our revenue from export earnings. Zimbabwe has also sustained a mix of foreign currency sources, with remittances topping US$2 billion over the last 3 years. The improvement in the business operating climate and the reengagement agenda has resulted in banks and private sector players securing credit lines. This is evidenced by loan proceeds topping $1,5 billion per year. This trend is expected to continue in the outlook. Going forward, the economy needs to sustain this healthy foreign currency mix, ensuring that production is kept at an optimal level and, if possible, lower the export surrender requirements in order to promote business viability,” he said.
According to the Reserve Bank of Zimbabwe (RBZ), foreign currency earnings have been pushed by gold and tobacco.
With the Second Republic implementing the ease of doing business reforms, analysts believe it will play a critical role in ensuring the exponential growth in foreign currency earnings.
