Story by Stanley James, Business Editor
ZIMBABWE’s gold sector is recording significant gains as international prices for the precious metal continue to rise, contributing to a near 50% increase in the country’s export earnings over the past year.
Gold, a key component of Zimbabwe’s mining sector and foreign currency reserves, has surged from an average of around US$2 000 per ounce last year to more than US$5 000 per ounce this month. The sustained price growth has elevated the value of locally produced gold, strengthening export performance and bolstering the fiscal position of the government.
According to the Reserve Bank of Zimbabwe, the increase in earnings from gold exports underscores the strategic importance of the sector to the national economy, particularly at a time when small-scale miners contribute over 60% of production.
Economist Dr Zachary Tambudzai noted that the price surge offers multiple benefits for Zimbabwe.
“This is really great for the nation remember gold is the most strategic mineral in Zimbabwe and the 47 % rise on the value of the commodity is mainly emanating from the current rise in the international prices for the commodity such a trend is really coming at a good time as treasury is also gaining a lot from the gold royalties whole the monetary authorities are benefitting in building more gold reserves and foreign currency backing the Zimbabwe Gold,” he said.
The firming global gold prices have also positively impacted on Zimbabwe’s fiscal and monetary policy agenda and government is confident of an overall growth trajectory by capacitating small scale miners that contribute over 60 % of gold production.
“The focus is on what we can do to enable the gold mining sector to expand yes indeed the prices are increasing and this is an opportunity for us to focus on capacitating the artisanal miners as for the large scale growers it is all about ramping up production and reviving full scale operations,” Deputy Minister of Mines and Mining Development Honourable Fred Moyo said.
As gold export receipts are increasing, this is also expected to bolster the National Development Strategy Two (NDS2) aspirations on mineral growth.
