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Zimbabwe leverages on resources for economic stability

by Staff reporter
11 Apr 2024 at 08:37hrs | Views
The backing of Zimbabwe's currency by gold and strategic mineral reserves is reflective of the Second Republic's determination to ensure the country's natural resources are leveraged to advance sustainable economic independence and sovereignty, President Mnangagwa has said.

The Reserve Bank of Zimbabwe (RBZ) last week unveiled the country's new currency, the ZiG, as part of several policy measures to address exchange rate volatility, curtail inflation and restore macro-economic stability.

In his remarks at the commissioning of the Pickstone Peerless Mine Underground Mining Project here yesterday, President Mnangagwa said the currency introduction was evidence of Government's commitment to improving Zimbabweans' standards of living.

To this end, he said it was incumbent upon Zimbabweans to demonstrate confidence and have pride in the country's heritage and identity, including its minerals and currency.

"It is fortunate that this commissioning ceremony of the Pickstone Peerless Mine Underground Mining Project is occurring a few days after the historic and unprecedented opening of our national vaults as well as launch of our country's structured currency.

"The backing of our currency against our gold and strategic mineral reserves is reflective of the Second Republic's determination to ensure that the resources of our motherland, Zimbabwe are leveraged to advance our quest to realise sustainable economic independence and sovereignty.

"As we build our beloved country, we must continue to be proud of our unique Zimbabwean heritage and identity, including our minerals and own currency, guided by our mantra, Nyika inovakwa, inotongwa, inonamatirwa nevene vayo/ Ilizwe lakhiwa, libuswe, likhulekelwe ngabanikazi bayo," he said.

The Second Republic, said President Mnangagwa, was thus all about accelerated development, production, productivity and the realisation of Zimbabwe's economic prosperity.

"The growth of the mining sector since 2018 from a mere US$2,8 billion industry to the current levels of close to US$12 billion has positively contributed to the overall growth of our national GDP. Congratulations to the mining sector.

"The Second Republic, since its inception, has always been about accelerated development, production, productivity and the realisation of economic prosperity and a higher quality of life for all the people of Zimbabwe.

"This agenda remains on course despite the climate change-induced drought that we are currently experiencing in our country and indeed the Sadc sub-region," said the President.

He said it was encouraging to note that investors were confident of Zimbabwe's conducive business environment.

The Pickstone Mine project was reflective of the company's long-term commitment to set up shop in Zimbabwe, a development that would see employment creation.

"The decision to embark on this underground mining project demonstrates Pickstone Peerless Mine's long-term commitment to establishing sustainable operations in Zimbabwe.

"It is indeed an expression of the confidence the company has in the Second Republic's policies and the conducive business operating environment which we continue to foster.

"This underground mining project signifies the opening of a new chapter for the Pickstone Peerless Mine community and the industry as a whole," he said.

President Mnangagwa commended the mining industry for contributing positively to the country's economic growth.

"The creation of 530 new jobs is most welcome and highlights the commitment of investors to complement my Government's efforts in building a stronger and more prosperous Zimbabwe.

"I am informed that an investment amounting to US$22 million was injected for Phase 1, which included equipping two existing shafts. A further US$28 million was invested under Phase 2, for the installation of new underground infrastructure to allow exploration and mining from lower levels," he said.

The establishment of such projects should translate into the development of local economies as the people should be the first beneficiaries, he said, stressing that harmony between the mine, community and artisanal miners should be propagated.

"Miners and the communities to which they belong must continue to enjoy the benefits of our hard-won independence through the growth and expansion of our mining sector.

"Hence, the growth of Pickstone Peerless Mine must create prosperity at many levels and translate to multi-layered development of the local economy, here in Chegutu District as well as positively impact the provincial GDP growth," he said.

"Stakeholders around this mine are called upon to adopt a more collaborative and co-ordinated approach towards entrenching harmony and peace while also addressing unemployment in the broader surrounding communities through training of the youth, including artisanal miners in professionalising their mining activities, among other skills."

Government, said President Mnangagwa, would continue to invest in science, technology and innovation to ensure institutions produce well-equipped personnel.

It was thus important for mining houses to initiate and nurture strong partnerships with these institutions to drive the country forward.

"I urge Pickstone Peerless Mine and other stakeholders to embrace new technologies for the accelerated growth of our mining sector," he said.

He assured the business community that the Second Republic would continue to provide adequate support for growth as this would be mutually beneficial.

"I want to assure our investors that my Administration will continue to provide unwavering support to your operations for the benefit of both the investors and the people of Zimbabwe.

"In this regard, the Ministry of Mines and Mining Development is directed to work concertedly to provide timeous and professional services towards the further development and growth of our country's mining sector," he said.

Furthermore, the President urged businesses to shun corruption, divisions and conflict as these would only take the country backwards.

Mines and Mining Development Minister Zhemu Soda said the commencement of underground operations is a sign of forward thinking.

"It extended the life of the mining and its continued contribution to our national economy. This project represents a substantial investment which has created new jobs and ensuring the continuity and prosperity," he said.

Dallaglio chairman Mr Stanford Moyo said they have invested close to US$90 million in mining operations in Zimbabwe.

Defence Minister Oppah Muchinguri-Kashiri said the project highlighted the Second Republic's game-changing mantra that Zimbabwe is open for business.

Source - the chronicle
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