Miners meet Mangudya over forex crisis

Miners meet Mangudya over forex crisis
Published: 19 October 2017
THE Reserve Bank of Zimbabwe (RBZ) recently held a meeting with miners to resolve a deteriorating foreign payments situation for miners, whose foreign payments backlog had been significantly reduced during the tobacco selling season which ended in August.

Batirai Manhando, president of the Chamber of Mines of Zimbabwe (CoMZ), said the meeting with RBZ governor John Mangudya was meant to discuss "a lasting solution" to the foreign currency shortages that had resulted in mining companies accumulating foreign payments backlog.

"We were discussing issues on support for mining houses in terms of foreign currency support for inputs," Manhando told The Financial Gazette.

"The issue of foreign currency has been stable until recently so that is the reason why we had to meet him (Mangudya). We agreed on an action plan that we are going to implement," he said.

He declined to give details.

The mining industry was expected to earn US$3 billion this year, with gold, chrome and platinum having been projected to perform above average this year.

However, government recently revised the projections, saying earnings from resource exports could now amount to US$2,6 billion.

The sector is one of the most critical in the economy after agriculture which received a boost last season from good rains.

Mining sector executives said foreign currency problems had resulted in international suppliers refusing to release orders until payment for the goods are made. A US$600 million facility to support foreign payments made available by the African Export and Import Bank is expected to ease the shortages.

But the miners will compete with other economic sectors for the foreign currency, including electricity and fuel imports.
- fingaz
Tags: Mangudya, Forex,

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