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Zimbabwe's 2024 foreign currency receipts top US$13bn
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Zimbabwe's foreign currency inflows grew by 21 percent in 2024, reaching US$13.3 billion compared to US$11 billion in 2023, driven primarily by an increase in export proceeds, according to the Reserve Bank of Zimbabwe (RBZ) 2025 Monetary Policy Statement (MPS).
Export receipts accounted for the largest share of inflows, contributing US$7.9 billion, or 59.2 percent, of the total. Diaspora remittances followed, contributing US$2.2 billion, or 16 percent.
The central bank highlighted that merchandise exports, led by gold and tobacco, totaled US$7.9 billion, with mineral exports alone growing by 7.8 percent from US$5.4 billion in 2023 to US$5.9 billion in 2024.
Gold exports saw a remarkable increase of 37 percent, climbing to US$2.5 billion in 2024 from US$1.8 billion the previous year. The growth was attributed to both higher production volumes and favorable global gold prices, which peaked at US$2,700 per ounce in October 2024.
"Gold purchases by Fidelity Gold Refiners (Private) Limited (FGR) rose from 30.1 tonnes in 2023 to 36.5 tonnes in 2024, reflecting a 21 percent increase," the RBZ said.
The rise in gold prices was fueled by heightened geopolitical tensions, sustained demand from central banks, and the easing of U.S. monetary policy. Emerging markets and developing economies (EMDEs) significantly increased their gold holdings in 2024 to diversify international reserve portfolios away from the U.S. dollar.
Equity Axis noted that Zimbabwe's gold production reached a record high of 36.47 tonnes in 2024, up from 31 tonnes in 2023. This surge was driven by favorable gold prices, enhanced pricing strategies from Fidelity, the establishment of more gold buying centers nationwide, and government efforts to formalize the informal gold mining sector.
"These factors collectively contributed to a more structured gold market, bolstering revenue generation in the mining sector," Equity Axis stated.
Looking ahead, the government has set an ambitious target of producing 40 tonnes of gold in 2025.
The increased foreign currency inflows also bolstered the country's current account performance, with preliminary estimates indicating a surplus of US$501.2 million in 2024 - up significantly from US$133.9 million in 2023.
This strong performance highlights Zimbabwe's potential for sustained economic growth, particularly through strategic investments in mining and export-driven sectors.
Export receipts accounted for the largest share of inflows, contributing US$7.9 billion, or 59.2 percent, of the total. Diaspora remittances followed, contributing US$2.2 billion, or 16 percent.
The central bank highlighted that merchandise exports, led by gold and tobacco, totaled US$7.9 billion, with mineral exports alone growing by 7.8 percent from US$5.4 billion in 2023 to US$5.9 billion in 2024.
Gold exports saw a remarkable increase of 37 percent, climbing to US$2.5 billion in 2024 from US$1.8 billion the previous year. The growth was attributed to both higher production volumes and favorable global gold prices, which peaked at US$2,700 per ounce in October 2024.
"Gold purchases by Fidelity Gold Refiners (Private) Limited (FGR) rose from 30.1 tonnes in 2023 to 36.5 tonnes in 2024, reflecting a 21 percent increase," the RBZ said.
Equity Axis noted that Zimbabwe's gold production reached a record high of 36.47 tonnes in 2024, up from 31 tonnes in 2023. This surge was driven by favorable gold prices, enhanced pricing strategies from Fidelity, the establishment of more gold buying centers nationwide, and government efforts to formalize the informal gold mining sector.
"These factors collectively contributed to a more structured gold market, bolstering revenue generation in the mining sector," Equity Axis stated.
Looking ahead, the government has set an ambitious target of producing 40 tonnes of gold in 2025.
The increased foreign currency inflows also bolstered the country's current account performance, with preliminary estimates indicating a surplus of US$501.2 million in 2024 - up significantly from US$133.9 million in 2023.
This strong performance highlights Zimbabwe's potential for sustained economic growth, particularly through strategic investments in mining and export-driven sectors.
Source - The Herald
