The mining sector’s export revenue totaled US$4.5 billion in the first 10 months of 2022 and the mining sector has financed 70% of the country’s imports over the period, Reserve Bank of Zimbabwe governor John Mangudya said on Wednesday.
The mining sector has benefited from increased output and firming prices.
Mangudya told delegates at the launch of the state of mining report that the mining sector continues to play a pivotal role in this economy.
“The mining sector exported about US$4.5 billion. We expect that figure to go to around US$5 billion to US$5.3 billion this year,” he said.
At US$4.5 billion, the mining sector financed 70% of the imports into this country.
“At that level, together with diaspora remittances, you find that you will be financing 87% of the imports in this country, so in terms of the significance of the sector, it is very critical.”
He said US$1 billion had been contributed by the mining sector between January and October towards the liquidation.
“These funds have gone towards the auction system, where US$926 million was utilized in the auction system, and from that money, US$450 million was used for payment of external obligations, facilities,” he said.
“Out of the total exports in this country, US$1.3 billion was liquidated under the retention scheme, of which US$1 billion came from mining.”
The competitiveness of doing business in the mining sector has been negatively affected by the high cost of doing business in the southern African nation coupled with high-cost drivers, poor infrastructure, unrealistic foreign currency controls accelerated by forex receipts retention, high tax burdens and policy flip-flops.
Zimbabwe is envisioning a US$12 billion mining industry by 2023. Gold alone is poised to contribute US$4 billion – Harare