The country’s total foreign currency earnings increased by approximately 9.5% during the first half of 2024 compared to the same period last year, largely driven by growth in export receipts from gold, said the Minister of Finance and Investment Promotion, Prof. Mthuli Ncube.
By Rudairo Mapuranga
According to Prof. Ncube, speaking at the Zimbabwe Economics Society and Friedrich-Ebert Stiftung (ZES/FES) Breakfast Meeting on the 2024 Midterm Budget and Economic Review held on Wednesday at the Hyatt Regency Hotel in Harare, export receipts increased from US$5.6 billion during the first half of 2023 to US$6.2 billion during the same period this year. This growth was also driven by agricultural commodities, manufactured products, and diaspora remittances.
“Total foreign currency receipts increased by 9.5% to US$6.2 billion during the period from January to June 2024, up from US$5.6 billion received during the same period in 2023, largely driven by the growth in export receipts, mainly from gold, agricultural commodities, and manufactured products, as well as diaspora remittances,” Prof. Mthuli Ncube said.
In 2023, the contribution of export proceeds to the country’s foreign currency receipts remained high at 55 per cent, although it was down from 64 per cent in 2022.
Overall, foreign currency receipts in 2023 amounted to US$10.9 billion, down 3.7% compared to 2022.
Mineral exports, which constitute about 80% of the country’s merchandise exports, declined by 7% to US$5.2 billion during the year.
While gold exports benefited from higher global prices amid safe-haven demand in 2023, they were weighed down by a significant volume decline caused by lower production during the year.
Gold deliveries to Fidelity Gold Refinery (FGR) were 30.16 tonnes during 2023, 14.7 per cent lower than the previous year.
The decline in deliveries was due to reduced output caused by power outages and disruptions from heavy rains, which negatively impacted mining operations during the early months of the year, the central bank said.
Gold exports in 2023 were estimated to have declined by about 11% to US$1.8 billion, while lithium exports surged by 854.7% to reach US$674 million.
