Zimbabwe's gold sector faces capital inflow challenges despite boom
via NewsDay Zimbabwe1 min read
Zimbabwe's gold sector is struggling to attract capital inflows, with gold miners reportedly shut out of global capital markets, threatening expansion. This comes as the country aims to unlock sector growth through formalization, as advocated by Mutapa Gold. The Ghana Chamber of Mines chief emphasized that policy certainty is crucial for Zimbabwe's mining growth. Meanwhile, other economic news includes a US$650 million investment vision reinforcing confidence in Zimbabwe鈥檚 long-term growth potential and a US$25 million climate recovery boost. The Deposit Protection Corporation fund surged 89% to US$28.8 million due to premium and investment gains, with premium contribution rates for ZiG and USD deposits remaining at 0.3% of annual average eligible deposits. Power outages and raw material shortages have impacted ART operations, with exports and paper division volumes declining by 6% and 26% respectively in the third quarter to June 2022. Additionally, colonial-era laws are reportedly hindering housing growth, and a car import boom highlights formalization failures. Political tensions over grasslands plots have led to violent attacks and forced evictions.
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This summary was AI-generated from a story originally published by NewsDay Zimbabwe.
Must ReadZimbabwe is seeing a range of developments across different sectors. Economic news includes a US$650 million investment vision, a US$25 million climate recovery boost, and an 89% surge in the Deposit Protection Corporation fund to US$28.8 million. There's also a focus on formalizing the gold sector and exploring rabbit export markets in Africa. Social issues include the Insurance Council of Zimbabwe offering compensation for Chiredzi bus disaster victims, concerns that colonial-era laws hinder housing growth, and the UNDP transforming rural areas. Politically, there are reports of tensions at grasslands plots leading to violence, calls for tougher marriage laws from the Senate, and speculation about Zanu PF's political strategies. Additionally, the article touches on sports with Musona's football form and a defiant Mpofu in a championship chase, and a discussion on yoga benefits beyond physical fitness.
Zimbabwean companies are aiming to expand their presence in regional mining value chains by participating in the DRC Mining Week in the Democratic Republic of Congo. ZimTrade market analyst, Lorraine Muzadzi, stated that this participation highlights efforts to position local businesses to capitalize on opportunities within Africa's mining sector. Muzadzi emphasized that DRC Mining Week offers a crucial platform for Zimbabwean companies to showcase their capabilities, products, and services to an international audience. She added that it facilitates strategic partnerships, new export markets, and relationship building with key industry players. The mining sector is a significant economic driver in the region, and the DRC's increasing demand for mining inputs, engineering solutions, and support services presents substantial opportunities for Zimbabwean exporters. Muzadzi noted that increased involvement in regional trade exhibitions aligns with Zimbabwe's industrialization agenda and its goal to boost export earnings. Strengthening trade relations with neighboring countries is expected to contribute to sustainable economic growth and help local firms diversify their export destinations. DRC Mining Week is recognized as a premier African mining conference and exhibition, attracting numerous exhibitors and delegates annually for networking, investment promotion, technology exchange, and discussions on the future of the continent's mining industry.
The Insurance Council of Zimbabwe is providing funeral and insurance compensation for the victims of the Chiredzi bus disaster. This initiative is part of a broader set of news items from Zimbabwe, which include discussions on investment visions, agricultural developments, and economic challenges. Other reports highlight a US$650 million investment vision, an ambassador supporting rabbit exports, and Zimbabwe's efforts to secure a US$25 million climate recovery boost. Economic news also covers a 89% surge in the DPC fund to US$28.8 million, a decline in manufacturing export and paper division volumes for the third quarter to June 2022, and concerns about power outages and raw material shortages affecting ART operations. Additionally, there are discussions about colonial-era laws hindering housing growth, political tensions leading to violence, and the need for policy certainty in the mining sector.