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Gold facility to drive mining sector growth


Story by Owen Mandovha

THE US$10 million gold facility unveiled this Wednesday has been described as the perfect intervention to increase gold production among small scale miners and drive growth of the sector.

Government has found a winning formula for spearheading economic development and service delivery after a top bank was roped in as the implementing partner in establishing gold service centres with the Chief Executive Officer Mr Lance Mambondiani saying they are coming in to support development of the mining sector.

‘‘This is a rare opportunity for us as BancABC to work with government in giving miners capacity and our role will be to identify and scrutinise would be borrowers,” he said.

The move has been welcomed by Zimbabwe Miners Federation (ZMF) President, Ms Henrietta Rushwaya who described the facility as a lasting solution to the plight of small scale miners whose operations have been plagued by lack of funding and the absence of critical supporting infrastructure.

‘‘This facility is a great intervention in terms of growing our capabilities to increase gold production. We have been crying and pleading for more support and I’m glad that government has finally come in handy to assist us,” said Rushwaya.

Fidelity Printers and Refiners (FPR) will set up buying facilities at the service centres.

Managing Director FPR Mr Philip Magaramombe said, ‘‘FPR will be at all the facilities to pay miners and provide other support so that government’s goal of achieving the targeted deliveries are achieved.”

Since the disbursements of the US$961 million IMF Special Drawing Rights in 2021 to government, Treasury has utilised the funds to develop critical sectors of the economy and several other similar facilities were availed last year to agriculture, manufacturing and tourism industries.