Let’s give ZiG full support: ZNCC
ZIMBABWE National Chamber of Commerce (ZNCC) Matabeleland Chapter, chairman Mr Bekezela Moyo has called upon local businesses and various stakeholders, including the mining sector to fully support the newly introduced Zimbabwe Gold (ZiG) currency as he underscored the importance of collective backing the latest monetary initiative.
The recent introduction of ZiG as the country’s new medium of exchange marks a significant step in addressing economic challenges. The move is part of a broader set of policy measures aimed at addressing exchange rate volatility, curtailing inflation and restoring durable macro-economic stability.
A “structured currency” is a currency that is pegged to a specific exchange rate or currency basket and ZiG shall always be anchored and fully backed by a composite basket of foreign currency and precious metals (mainly gold) reserves.
According to official data, the ZiG is supported by RBZ asset reserves, which include 2,5 tonnes of gold (worth US$185 million) and US$100 million in cash.
The entire ZWL$2,6 trillion, or US$90 million equivalent, in reserve assets is sufficient to cover all of the reserve money in the system. These reserve assets total US$285 million.
The new currency will start circulating in the market on Tuesday. Notably, all ZiG banknotes and coins were produced locally.
Mr Moyo, addressing attendees at the ZNCC business luncheon during the Zimbabwe International Trade Fair (ZITF) last Friday, emphasised the pivotal role that the business sector can play in ensuring the triumph of the new currency.He said innovation can help to grow the economy when the country is also supported by its strong currency.
“We need to back the ZiG because we are the ones who are using it. We must be at the forefront in making sure that it is strengthened. If it’s gold that will strengthen it, let’s retool, let’s retool our mines and go out there and produce to make sure that we create a much larger reserve,” said Mr Moyo.
He said the mining sector, which is supposed to play a crucial role in backing the new gold-backed currency, is faced with challenges, which include a shortage of finance to retool.
He urged the Government to equip small-scale miners saying the sector has been delivering more gold to the Fidelity Gold Refinery (FGR) than large-scale miners.
Mr Moyo added that small-scale miners can leverage innovation to improve their production as there are numerous innovative ways to extract minerals without using many resources.
“We need to learn to be innovative, there are much simpler ways of producing gold, so having equipment is not the major issue because it is not going to be a driver of production but it will assist but innovation will help people to be more productive,” he said.
According to the country’s exclusive buyer of gold, FGR, 30,1 tonnes were delivered in 2023 compared to a record high of 35,3 tonnes in 2022.Of the total, small-scale miners, who traditionally produce the majority of the gold, again maintained momentum in 2023, delivering 18,7 tonnes.
Speaking at the same event, Industry and Commerce Minister Mangaliso Ndlovu who was represented by the ministry’s chief director for the Industry Division Ms Florence Makombe said entrepreneurship is the cornerstone of economic development and prosperity as it is the driving force behind innovation, job creation and wealth generation.
“Whether it is through the creation of new business ventures or the pursuit of corporate entrepreneurship within established organisations, these visionaries who dare to dream big and act on it, have the power to ignite industrialisation and propel economies forward across all seven continents,” minister. — chronicle
