Foreign Currency Shortage; The Greatest Challenge in the Mining Sector

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Foreign currency is the greatest challenge in Zimbabwe’s mining sector, Reserve Bank of Zimbabwe (RBZ) Deputy Governor, Dr Kupukile Mlambo has revealed.
Dr Mlambo was speaking during the Zimbabwe Mining Investment Conference which started today in Harare.

“Companies are getting foreign currency from other places you know them I don’t want to name them” said the Deputy Governor.

The black market has been reported as the main source of foreign currency in Zimbabwe as the RBZ fails to supply money for buying equipment for mining. Zimbabwe does not have a currency and is relying on the US Dollar which is proving to be a challenge evidenced by the cash shortages in the country.

“We have the local US$ which are in the form of our RTGS and…  to access the foreign US$ the banks have to import since we do not print the US Dollar,” Mlambo said.

Mlambo also revealed that the RBZ is focusing on export-based industries which bring in foreign currency in the country. Although there are still challenges in the mining sector, investors have commended the government on the work being done.
Africa Chrome Fields (Pvt) Ltd national project liaison director, Mr Ashruf Kaka said that some of the problems which miners are complaining about can averagely be found everywhere.

“We are in Russia, Singapore… We have met the same situations in environment, taxes,” said Kaka.

One of the participants who is in the process of setting up a mine in the country said that the government has been speeding up processes after the new dispensation took over.
Zimbabwe Mining Investment Conference, which is a two days event has witnessed Parliamentarians, business people and different mining companies attend to find business opportunities in the country.
President Emmerson Mnangagwa and Minister of Mines and Mining Development, Winston Chitando, will also be addressing delegates tomorrow.

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