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New Incentives Will Increase Gold exports – Chitando

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gold bars and golden coins

Earlier this month, Government through the Reserve Bank of Zimbabwe (RBZ) announced an incremental export incentive scheme to boost the country’s exports.In terms of the new incremental export incentive scheme, all exporters currently retaining 60 percent of their foreign currency receipts will have their retention threshold increased to 80 percent. Minister of Mines and Mining Development Winston Chitando has introduced incentives set to increase gold exports.

Speaking to Technomag Minister chitando had this to say about gold, ” we also have gold were we have lots of breaches large scale mining and small scale mining..on the large scale miners the notable projects includes but not limited to shamva mine whose re-opening was graced by His EXCELLENCY. Which will produce up to 5 tonnes Eureka .so far one and a half tonnes a brand new production and lots of expansions in new projects and also lots of increase in the artisanal gold production which we are targeting .we are targeting to have 100 tonnes per annum by 2023 yes admittedly we witnessed a slump in production last year …BUT Government is working. and looking at the policy framework to see how government can facilitate the production of 100 tonnes per annum of gold.”

Exporters licensed under the Special Economic Zones currently retaining 60 percent now have their threshold increased to 100 percent, the same as exporters listed on the Victoria Falls Stock Exchange (VFEX).

The yellow metal has traditionally been Zimbabwe’s biggest foreign currency earner. Zimbabwe’s authorities are targeting the gold sector to contribute about US$4 billion to the US$12 billion target by 2023.
Zimbabwe’s gold exports are likely to improve with players in the industry being some of the biggest beneficiaries of the new incremental export incentives that were introduced this month.

According to official data, the country’s total gold deliveries fell to 19,05 tonnes last year from 27,66 tonnes in 2019.

Over the same period, small-scale producers sold just 9,35 tonnes last year compared with 17,48 tonnes in 2019, with indications that some of the gold is being smuggled out of the country as illegal buyers offer better prices.

Said economist Persistence Gwanyanya: “Gold will be a major beneficiary of this incentive. The incentive comes at a time when gold sales to Fidelity Printers and Refineries fell significantly to around 19 tonnes from previous levels of above 30 tonnes, with low retention levels cited as one of the reasons.

“Now this was worrying as it occurred at a time when gold prices peaked to more than US$2 000 per ounce thus presenting missed opportunity for Zimbabwe.”

Ross Moyo

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