The Reserve Bank of Zimbabwe says the foreign currency auction system in anchored by earning from mining and the agricultural sector.
In his presentation at the recently held Great Dyke Mining and Agriculture Investment Conference, Reserve Bank of Zimbabwe Deputy Director Economic Research Dr Nebson Mupunga said agriculture contributes 14 percent to the country’s gross domestic product while mining contributes 11 percent, bringing the total contributions by the two sectors to the country’s GDP to 25 percent.
“These sectors play a critical role as far as generation of foreign currency is concerned. The foreign currency auction system is actually supported by foreign currency receipts which mainly come from mining and agriculture.
“Mining alone last year contributed about US 4.8 billion dollars which is a lot of money and if we are to take forty percent that we take as surrender requirement to support the auction, I think you can agree with me that is quite substantial, which is money that we use to support key activities or key requirements in the country,” he said.
He said the mining sector recorded a 3 percent growth rate last year, which compared favourably with a negative growth of minus nine percent the previous year.
Dr Mupunga noted that Zimbabwe’s economy had a high growth rate of 7.8 percent in 2021 and that this was primarily driven by agriculture.
“Last year we recorded a growth rate of 7.8 percent and of that growth agriculture alone grew by 36 percent which means most of that growth was from agriculture, so this underscores the need to support agriculture,” added Dr Mupunga.
Presenting the Great Dyke Mining and Agriculture Investment Report, Dr Tonderai Kapesa of the Africa Economic Development Strategies (AEDS) called for the value addition of minerals and agricultural produce in the Great Dyke.
“Most of the opportunities lie in value addition of minerals as most of our minerals are exported raw. We need to value add and process some of our minerals before export and there is also need to value add crops such as traditional small grains,” he said.
YAFM commissioned the study with a view to unlocking the full value of mineral wealth and the agricultural potential in the Great Dyke.