Zimbabwe Cuts Gold Levy to Assist Revival

Patrick Chinamasa
Patrick Chinamasa

Harare: Patrick Chinamasa, the Zimbabwean finance minister reduced royalties on gold producers from 7% to 5% in a bid to incentivize growth in the mining sector which is now faced by a negative growth of 1.9% for this year.

Zimbabwe is a resource- and agro-based economy whose manufacturing and industry sectors are wobbling. The mining sector has, however, been showing signs of recovery and was expected to be leading the country’s economic revival.

Mining groups such as Impala Platinum, Anglo Platinum, Metallon Gold and Rio Tinto all have exposure in the mineral rich Southern African country.

However, said mining industry executives on Thursday, the sector is struggling to realize its true potential owing to persistent constraints such as power outages and investor concerns rooted in the operating and regulatory framework.