Mnangagwa asks why Zimbabwe is in such a mess when fundamentals point the other direction


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Our reserve money has been kept at $28 billion.

We are not printing money and have ensured our currency is supported by our reserves.

The $28 billion in reserve money is equivalent to US$116 million at current interbank foreign exchange rate of between $225 and $280 per United States dollar.

Clearly, the financial fundamentals to support a stable domestic currency are in place.

Yet this is not so, with our domestic currency becoming unstable lately.

Fundamentals in the real economy buttress the above positive story.

Our mining sector is doing quite well; in fact, on a steady road to a US$12 billion target.

Gold deliveries have risen phenomenally, putting our target of 40 tonnes well in sight.

On the world market, prices of base metals have been firming, again putting us in very good space.

Old mines, which for a long time were closed, are reopening.

New mining projects are being developed and opened.

We continue to discover new mineral deposits, with greater prospecting activity registering in the country.

The mining sector gives much reason for buoyancy in the economy.

Anxieties around power supply constraints have eased, with more power units under development in the country.

By year-end, Hwange 7 will come on stream, adding some 300 megawatts to our grid.

Hwange 8 is set to follow by March next year, to give us another 300 megawatts.

Smaller thermal stations in Bulawayo are being refurbished and upgraded. We also have several solar projects at different stages of development. Clearly our investments in energy match the expanding economic activity we continue to witness and envisage.

Besides, we have power import options we can always bring to bear should demand for power exceed installed supply capacity. Fears around power deficit are thus not a factor anymore.

After being jolted by the global Covid-19 pandemic, our tourism is beginning to rise again.

Arrivals are on the increase.

Zimbabwe continues to consolidate as a destination of choice, evidenced by the growing number of carriers which have started landing.

Our aggressive Covid-19 management strategy has made Zimbabwe a secure country for visitors.

Receipts from tourism thus bolster the buoyancy in our economy.

Continued next page

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Charles Rukuni
The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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