By Thembelani Moyo
MINING has continued to rule the roost as the backbone of the country’s economy after coming tops in the generation of foreign currency export receipts, with the sector contributing above 60% of the foreign cash generated.
The Reserve Bank of Zimbabwe singled gold and platinum out as the chief contributors to the sector’s foreign currency receipts.
RBZ Principal Analyst and Exchange Control Director Dr Unnah Chisango said the mining sector generated exports of over U.S. $19 billion; other sectors earned U.S. $8, 6billion combined. This was during the period from 2015 to 2021.
Chisango revealed this as she addressed delegates to the 9th edition of the Mining Media Awards
She said the mining sector has the potential to grow the economy and help diverse industries.
“The contribution by the mining sector to foreign currency receipts has enabled other critical sectors to finance their imports requirement and thus sustain operations in these sectors.”
Chisango reported mining has helped with the financing of the auction system, which has led to stable pricing and exchange rate.
To reinforce the efforts to build the mining sector, Dr Chisango mentioned the RBZ has introduced export incentives and financial help to miners.
“The Reserve Bank is keen to see the growth of mining [because of] it’s importance to the economy. To grow the sector and to enhance operational viability, the bank has implemented an incremental exports incentives scheme. Miners who are increasing their export receipts are enjoying a higher retention of the incremental export receipts. This is critical to finance their expansion initiatives.
“Through its subsidiary, Fidelity Gold Refiners [and Printers], the bank is supporting small-scale gold miners with loans to enable them to increase their production levels. In promoting the ease of doing business, the bank… is also expeditiously facilitating exports and imports requested by the mining sector to enable timeous shipments and utilisation of foreign currency,” she said.
Dr Chisango called on the mining sector to adopt sustainable mining methods to ensure a safe and habitable environment for this and future generations.
