Mining companies in Zimbabwe said a central bank requirement compelling them to surrender more foreign exchange earned from mineral exports will push their operations to the brink. The Reserve Bank of Zimbabwe announced on January 8 that exporters must hand over 40% of their foreign currency earnings, up from 30%, which is then paid out in the local currency. The country’s mining body said the move would create “a viability crisis” for the industry as members already face increased demand for payment in hard currency from various government agencies, suppliers and service providers. The move could lead to lower output, and the suspension of exploration, maintenance and expansion activities, including investment in power projects, the chamber said. The country generates more than half its foreign exchange via mineral exports from companies that include the local units of Impala Platinum and Anglo American Platinum.
SOURCE: AFRICAN MINING MARKET
More Stories
Rukky Ladoja & Building a Responsible Nigerian Fashion Brand
How to Write About Africa: Collected Works’ Shows Binyavanga Wainaina’s Legacy
Amapiano to the World: The Next Cultural Shift in Mainstream Music
Feeling at Home at New York’s Contemporary African Art Fair
Mr. Eazi on African Music’s Role in Developing and Stimulating the Creative Economy
8 Lisbon Restaurants for Discovering the City’s African Diaspora
Silversea Cruises’ Extended Indian Ocean Island and Southern Africa Programme
Events Specifically Dedicated to Celebrating Black Music and Culture in Europe
Namibia Offers a Wealth of Experiences for Adventurous Travellers
Top Destinations to Visit in Africa
Establishing Manufacturing Nodes across the Continent and Leveraging on the AfCFTA
The Agritech Innovators Bringing Transformative Change to the Continent’s Green Economy