ZIMBABWE’S foreign currency reserves rebuilding agenda is on course after gold export receipts for the period January to July surpassed US$1.5 billion.
The introduction of the Zimbabwe Gold (ZiG) in April last year saw the central bank rolling out a foreign currency reserve building strategy to back the domestic currency.
With a continuous increase in gold export receipts driven by favourable global commodity prices, Zimbabwe has, since January this year, earned over US$1.5 billion compared to over US$1.3 billion during the same period last year.
As gold exporters are required to retain 70 percent of their foreign currency from exports and sell the 30 percent to the central bank in exchange for the domestic currency at a prevailing official exchange rate, the growth in export receipts is setting the tone for a stable domestic currency.
Permanent Secretary in the Ministry of Mines and Mining Development, Mr Pfungwa Kunaka, believes the gold mining industry has the capacity to increase exports.
“If you look closely, the period of January to July 2025 has been characterised by exciting times where the gold prices on the international arena are on an upward trajectory as many investors are taking gold as a safe haven for future plans. This has created viable prices and good returns back home leading to the maximisation of profits for the small and large scale miners. This has also been aided by the Fidelity Gold Refinery’s ability to pay the miners on time, include good or viable prices, with the trend cascading to increased formalisation of deliveries for the yellow metal resulting in the much desired rise in terms of the yellow metal export receipts.
“We are anticipating a further rise in the value of the earnings to over US$3 billion by year-end as the domestic gold miners ramp up production and take advantage of the viable prices on offer. This will also benefit the central bank’s reserve building agenda to back the Zimbabwe Gold and translate to stability of the domestic currency,” he said.
Speaking on the sidelines of an Environment, Social and Governance Conference in Harare this Thursday, Green Building Council of Zimbabwe Head of Secretariat, Mrs Clara Mapokotera, said the sustainability of the gold mining sector hinges on adaptation to environmentally friendly mining systems.
“Sustainable mining practices are the hallmark for the gold industry’s viability prospects, this means that the gold mining industry should take care of the environment in which it is operating so that there are no footprints that can harm future generations.
“Another key element is that of implementing sound corporate governance systems to ensure that employees and employers are also focusing on continuity through the principles of profitability. The last aspect relates to ploughing back the profits in which the gold miners are operating so as to facilitate development,” she explained.
Gold continues to maintain its position as Zimbabwe’s top foreign currency earner.
