• Tue. Apr 23rd, 2024

Govt launches US$10 million gold facility

ByEconomic Times

Feb 16, 2023

By ETimes

Zimbabwe has launched a US$10 million gold facility meant for mining expansion and value addition.

The Artisanal Gold Small Scale Miners Fund (AGSMF) and Gold Service Centre Revolving Facility (GSCF) have each been allocated US$5 million.

Finance Minister Mthuli Ncube told the media in the capital that the mining industry has the potential to produce foreign exchange revenues and jobs that will have a multiplier effect on the economy’s expansion.

“The Gold Facility has the potential to close the funding gap and spearhead increased productivity, as well as finance bankable projects with a focus on value addition,” he said.

Under the US$5 million facility, there will be the construction of six gold service centers to improve access to critical facilities by AGSM.

The AGSM accounts for more than 50% of the gold produced in Zimbabwe.

“To this end, the setting up of a USD$5 million GSCF and a USD$5 million AGSMF will go a long way in capacitating the small-scale miners through the construction of gold service centers as well as providing them with the requisite tools of the trade for their day-to-day operations.”

The Zimbabwe Mining Development Corporation (ZMDC) will be the implementing agency for the USD$5 million GSCF. ZMDC will be in charge of building the gold service centers in this regard. The GSCF’s disbursement will be handled by BancABC Bank.

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Access to the USD$5 million AGSMF will be made possible by the Ministry of Mines and Mining Development’s Mining Loan Fund. Applications for the Mining Loan Fund must be submitted by eligible artisanal small-scale miners along with the necessary documentation. The AGSM will receive a complete list of the necessary information and documentation from the Ministry of Mines and Mining Development.

According to Reserve Bank of Zimbabwe statistics, the country’s total mineral exports increased from only US$889.1 million in 2008 to US$5,085.43 million by 2021.

The exports grew at an annual average rate of 39.1% for the period 2008–2021.

Zimbabwe’s top mineral export, increased from US$1.2 billion in 2020 to US$1.7 billion in 2021, according to RBZ. The RBZ attributed the 42% increase in 2021 to improved gold output and firm prices as global economies recovered from Covid-19 lockdowns – Harare

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