Mining Contribute 8.7 Percent to GDP
Zimbabwe mining sector’s contribution to the Gross Domestic Product (GDP) has increased to 8.7% in 2017 from 7.9% recorded in the previous financial year, Finance and Economic development Minister Patrick Chinamasa has said.
Chinamasa made the remarks while presenting the Midterm Budget Review in parliament on Thursday adding that the mining sector remains the best performing due to its immense contribution to the country’s revenue through exports.
“Mineral exports amounted to US$2.2 billion, from US$2.1 billion recorded in 2015, with major contributors being gold and Platinum Group of Metals (PGMs),” said Chinamasa adding that small scale mining also contributed significantly to the GDP.
“The impact on gold output was an increase in the production contribution from the small scale miners to 42.6%, from 36.7% in the previous year,” he added.
Chinamasa stated that small scale miners should benefit from Government support through the Small to Medium Enterprise’ Mining Loan Fund, as well as the recently launched US$20 million SME Facility for artisanal miners.
In 2017, the mining sector is expected to grow by 5.1%, driven mainly by output in gold, platinum, chrome, coal and nickel..
Added Chinamasa “the on-going reforms in diamonds and the coal industry are already seeing the turn-around of these sub-sectors, providing impetus for higher growth of mining.”
The Finance Minister said with the capitalisation of the Zimbabwe Consolidated Diamond Mining Company, diamonds output during the first half of 2017 were 1.1 million carats against 690 000 carats produced during the previous year.
Coal output is also on the increase following implementation of turnaround strategies at Hwange Colliery. As a result of Government capitalisation of Hwange Colliery and the institution of a new Board, monthly coal production jumped from 30 000 tons to 150 000 tons.
With all these initiatives, the mining sector is expected to grow by 5.1% in 2017.
Mining Sector Revenue
|Total Government Revenue (US$ Millions)||934||2,339||2,921||3,496||3,741||3,727||3,737||3,502|
|Mining Revenue (US$ Millions)||50.6||154||161.3||245.8||185.2||335.9||139.9||75.74|
|Mining Revenue Share (%)||5.4||6.6||5.5||7||4.8||9||3.7||2.2|
Source: Ministry of Finance and Economic Development