Harare- ZIMBABWE ’s mining sector has welcomed the historic surge in global gold prices with the Zimbabwe Miners Federation (ZMF) saying the development presents a major economic opportunity for the country,Express Mail Zim can report.
The price of gold last week soared to an unprecedented USD 3,400 per troy ounce (approximately USD 109 per gram).
A Troy ounce is 31 grammes in measurement of precious metals.
Economists say this was driven by global economic uncertainties and trade tensions.
ZMF president Henrietta Rushwaya described the price spike as a “game-changer” for Zimbabwe’s gold producers especially small-scale miners who contribute significantly to national output.
“This surge in gold prices is a game-changer for our economy,” Rushwaya said.
“With gold being one of Zimbabwe’s top exports, increased earnings will enhance foreign currency inflows, support the local currency and create more employment opportunities in the mining sector. It is a welcome development that aligns with our national vision for economic growth,” added Rushwaya.
She said ZMF believes that with proper policy alignment the country can maximize the benefits of the price boom and further formalize small-scale mining operations.
International analysts attributed the surge in gold prices to investors seeking safe havens amid rising global uncertainty including renewed trade tensions between the U.S. and China coupled with a weakening US dollar.
Local economist Tawanda Chimutsanyu noted the price rise will boost foreign currency reserves, enabling the government to support the Zimbabwe Gold (ZiG) currency and facilitate imports.
However, he cautioned about inconsistent monetary policy communication regarding the gold backing of ZiG.
“Theoretically, a gold price hike boosts exports and strengthens our reserves, but clarity is needed on whether our currency remains gold-backed,” he said.
Industry experts also highlighted the potential for increased earnings by artisanal miners and the knock-on effect on employment creation.
However, concerns were raised about the risk of increased smuggling and gold leakages if regulatory systems are not tightened.
If the current trend continues, analysts predict the price could reach USD 3,500 per ounce although they urged caution due to the unpredictable nature of global markets.
The surge comes as Zimbabwe’s Ministry of Mines and Mining Development intensifies efforts towards “Vision 2030,” which targets a US$12 billion annual contribution from the mining sector to the Gross Domestic Product(GDP)
Meanwhile, the Zimbabwe Miners Federation (ZMF) is a government initiative aimed at promoting sustainable growth and meaningful transformation within the artisanal and small-scale Mining sector.
As Zimbabwe’s largest mining organisation, ZMF boasts over 1.5 million members who contribute, on average, 60% of the annual gold deliveries to Fidelity Gold Refinery (FGR), the nation’s sole gold buyer.
