- A new report published by the Brussels-based International Crisis Group (ICG) points out that strengthening the gold mining in Zimbabwe is key to revitalise the country’s economy.
- Joining calls for reforms coming from within Zimbabwe the new report “All That Glitters is Not Gold – Turmoil in Zimbabwe’s Mining Sector” highlights the issues plaguing the sector.
Gold is Zimbabwe’s highest foreign exchange earner. The metal is also the only commodity that has recorded uninterrupted price appreciation in the global markets in spite of the pandemic. The Gold mining sector of Zimbabwe has been rocked by violence and turmoil while the government’s centralised selling system has led to lost tax revenue and foreign exchange.
A new report published by the Brussels-based International Crisis Group (ICG) points out that strengthening the gold mining in Zimbabwe is key to revitalise the country’s struggling economy. Joining calls for reforms coming from within Zimbabwe the new report “All That Glitters is Not Gold – Turmoil in Zimbabwe’s Mining Sector” highlights the issues plaguing the sector.
“Machete gangs” loot, take over and loot Artisanal and small-scale miners who account for 63 percent of gold production. Ruling party politicians have been alleged of supporting illegally encroaching artisanal miners or even machete gangs. Additionally, miners are forced to sell through a subsidiary of the country’s central bank, which often pays late and at rates substantially below the world gold price which leads to smuggling. According to reports, more than $1.5 billion worth of gold leaves Zimbabwe illegally each year, mainly for Dubai.
The report outlines measures which the government, mining companies, civil society and international actors could adopt. These recommendations include giving artisanal mining cooperatives legal standing, paying gold producers at world prices to reduce smuggling and strengthening mining dispute resolution mechanisms. It further adds that Influential external actors like African Peer Review Mechanism (APRM), a continental body that assesses African governments’ performance, Multilateral organisations such as the International Monetary Fund should include metrics on mining when assessing Zimbabwe’s good governance and reform efforts. South Africa, which remains a key investor in Zimbabwe’s mining sector and stands to lose from continuing economic crises in Zimbabwe, should also press for mining sector reforms.
