HARARE – Zimbabwe’s gold output has fallen in volume terms.
Gold is the single largest export earner in the southern African country, whose economy is flat lining as a result of lack of investment, electricity shortages and high cost of capital.
The recently released figures by Fidelity Printers and Refiners — the sole buyer of all gold produced in Zimbabwe — starkly illustrate the decline of local gold production.
January deliveries came in at 1,7 tones which is at par with the average gold deliveries in the last three-month period of the year, as compared to an average of 2,8 tonnes a month recorded throughout 2018, which is 65 percent ahead of January outturn.
Financial research firm Equity Axis said the decline in deliveries interestingly coincided with government’s edict to banks to open separate accounts for local and foreign currencies.
In that very same month of October, production came off by almost half at 43 percent and has kept falling in two more successive months.
“Miners largely small scale, could possibly have immediately diverted their produce to outside markets notably in South Africa and Mozambique,” the research firm said”