Zimbabwe looking underground for golden economic revival

HARARE, Nov 08 (AFP): Reeling from decades of economic mismanagement, Zimbabwe is banking on gold to shore up revenue and tackle the upshots of rampant hyperinflation, corruption and coronavirus restrictions.

Global gold prices have surged more than 30 per cent this year, topping a record $2,000 (1,700 euros) an ounce in August, as the precious metal became a safe haven for investors in the face of Covid-induced volatility.

The landlocked southern African country boasts vast gold reserves, alongside chrome, diamonds, platinum and another 40 other minerals.

The government is eyeing gold as a possible magic bullet for an economy forecast to contract by a tenth this year, according to the International Monetary Fund (IMF).

According to official figures, gold production in the first eight months of 2020 rose 10 per cent, driven especially by output from small-scale miners.

Plans are under way to reap $12 billion (10.2 billion euros) from mining by 2023, mainly through gold.

The sector already accounts for 60 per cent of Zimbabwean exports, raking in around $1 billion a year, and represents half of the southern African country's foreign direct investment.