The Reserve Bank of Zimbabwe (RBZ) is concerned about the anticipated decline in platinum group metal (PGM) prices in 2025, driven by slowing demand from the automotive sector as the shift to renewable energy accelerates.
By Rayan Chigoche
Platinum prices have fluctuated significantly over the years. In March 2008, platinum hit an all-time high of $2,290 per ounce due to strong demand and supply concerns. However, following the global financial crisis, prices dropped. By mid-2022, platinum was around $1,300 per ounce, falling below $1,000 per ounce by June 2022 due to reduced demand, a stronger U.S. dollar, and economic uncertainty.
Between 2022 and 2023, platinum prices remained volatile, fluctuating between $900 and $1,000 per ounce. Market forecasts predict further weakening in 2025, with prices likely staying within this range due to economic slowdowns and increased recycling supply.
In the 2025 RBZ Monetary Policy Statement, Governor John Mushayavanhu warned that declining PGM prices would significantly impact export earnings. “The demand for PGMs is likely to remain subdued owing to the shifting structure of the automotive sector against the growth in the electric vehicle sub-sector. These developments will weigh down prices, with negative spillovers to Zimbabwe’s export proceeds,” he said.
To counteract this, the RBZ announced a controversial policy—the liquidation of 30% of export proceeds, a move seen as a significant blow to PGM producers.
However, the RBZ remains optimistic about gold prices, which are expected to stay strong due to geopolitical tensions and safe-haven demand, helping stabilize export revenues.
Meanwhile, total foreign currency receipts for 2024 amounted to US$13.32 billion, a 21% increase from US$11 billion in 2023. Export proceeds contributed 59.2% of this, totalling over US$7.8 billion.
