Home News Mining Is The Bedrock Of Zim Economy: RBZ

Mining Is The Bedrock Of Zim Economy: RBZ

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The Reserve Bank of Zimbabwe has praised the mining sector for boosting the economy of the country saying that this year only, the central bank is expecting $4.4 billion from mining.

Speaking during the State of the Mining Industry Report :Prospects for 2022 breakfast meeting held in the capital today, the Reserve Bank of Zimbabwe Governor Dr. John Mangudya revealed that the bank is impressed with the mining sector performance despite covid 19 challenges.

“You are a very important sector and with the numbers we got from the report, l am quite pleased with your performance in the mining sector.

“We are so impressed that this year we are expecting $4.4 billion from the mineral exports which is the highest recorded in the history of this country and l would like to say the mining sector is doing a great job.

“I have a feeling that we are going to do better towards the achievement of the 2023 mining sector target because when you consider $2.2 billion recorded since 2015 to $4.4,(billion) that’s doubling,” he said.

He also described the mining sector as the pillar of the country’s growth adding that without mining, the auction system was going to collapse.

“After compiling these numbers yesterday l came to a conclusion that the mining industry is the rock where our Zimbabwean economy is built.

“It reminds me of the story of Peter when he was told by Jesus that he was the rock where the church was going to be built. So today l would like the mining sector to know that you are the rock on which our Zimbabwean economy is built not only because minerals come from the rock but you are the foundation where our foreign currency comes from.

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“The Reserve Bank of Zimbabwe is quite happy with your performance, and the other issue is your contribution to GDP, right now you are at about 11 percent of GDP.

“If you look at the national mining output, from 2015 to 2021, the sector is going to grow by 3.4 percent,74 percent export receipts and 7.2 percent employment and it’s very important in our economy.

“78 percent of the foreign currency has been coming from the mining industry to support the auction system and that’s why the economy is moving, so you are doing great not only for yourselves but for the entire economy, that’s why l said you are the rock on which this economy is built,” he added.

According to the report, mining executives are confident about mineral output growth by 2022. The majority of the respondents to the survey which are mining houses are planning to ramp up production in 2022 by ranges of 3 percent to as high as 100 percent. Approximately 8 percent of respondents are planning to increase production by up to 40 percent while 42 percent of the respondents are planning to ramp up production by more than 40 percent.

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