Gold sector, industry must play ball

T’S not an opinion that Zimbabwe is facing economic challenges characterised by foreign currency shortages to retool and modernise industries, unemployment and general increase in the cost of basic commodities.

Simple economics implies that no country can generate enough foreign currency, let alone have reserves if the manufacturing sector does not produce goods to satisfy local consumption and then for the export market.

Therefore the responsibility to generate foreign currency should not be saddled on a few corporates, but everyone should play ball if the country is to prosper and Zimbabweans be counted as game changers in the continent and beyond.

The Minister of Finance and Economic Development Patrick Chinamasa, Reserve Bank of Zimbabwe Governor Dr John Mangudya and indeed, the whole country, marvel when the tobacco selling season opens every year because of the huge amounts of foreign currency generated.

Reports say at least the amount of foreign currency generated by the tobacco sector is enough to import enough fuel to power the country for a year — quite commendable.

It is against this background that other key sectors of the economy that run round the clock unlike the tobacco sector such as the gold mining sector, stand up and be counted, or even outshine all other sectors of the economy.

This, however, might not be achieved given that there are a lot of underhand dealings and some shenanigans that go undetected in the gold sector and only God knows how many tonnes of the yellow metal are smuggled out of the country by our brothers and sisters, some of whom receive massive support from Government.

Surely the decision by Fidelity Printers and Refiners a fortnight ago to reduce cash payouts to small-scale gold miners by 40 percent, and the rest deposited in their bank accounts should not be interpreted as a move to punish them.

The move, we believe is not also to hurt the industry players, but part of extraordinary measures taken to help fix some of the challenges being faced, especially foreign currency shortages to import some essential goods.

Fears by some players already alleging the move will hurt production and give rise to smuggling of the precious mineral out of the country should be condemned as the central bank has no sinister motives at all.

Of course, it hurts because before the new arrangement, small-scale miners used to receive 100 percent cash (US dollars) on delivery of the metal to the gold buying firm and no one knows what ended up being the final destination of that foreign currency.

However, under the new payment system as we reported in this paper yesterday, miners are now getting 60 percent of their earnings in US dollars, while the remaining 40 percent is deposited in bank accounts, we quoted the Zimbabwe Miners’ Federation spokesperson Dosman Mangisi, as saying.

We believe the gold miners are Zimbabweans conducting business in Zimbabwe and comments by Mr Mangisi that; “we fear that this may result in massive smuggling of the commodity to neighbouring countries,” will not happen because all corporate citizens should play according to the laws of the country.

The small-scale and artisanal miners account for close to 45 percent of Zimbabwe’s bullion production, which hit 10 million kilogrammes during the first six months of the year and gold is country’s second largest foreigner currency earner after tobacco.

Paying the miners US dollars in full, which came alongside decriminalisation of artisanal miners’ activities, was meant to incentivise miners to increase gold production and if there is policy shift because of some unforeseeable developments, we expect everyone to comply.

We believe, in conducting their businesses, the same miners would want to use electricity or fuel and this can only be available if other stakeholders get a fair share of the limited foreign currency.

If other exporters retain as little foreign currency as 20 percent, while farmers nothing at all, why should there be an outcry on the gold sector. The pain the country is experiencing should not be borne by a few while others are treated as a special class.

Besides, indications are that the 100 percent foreign currency some of the miners have been getting was being used to import luxurious products like vehicles and at times some building materials some locally available.

As Zimbabwe battles to extricate itself from the economic situation that it finds itself in, it is our clarion call that all citizens; corporates and individuals pull in the same direction and saboteurs, surely should be given the right treatment they deserve.