Minister of Mines and Mineral Development Obert Mpofu said “We had more than 800 investors from Europe, Australia, Canada and US at the mining the conference. Following the mining conference addressed by Prime Minister Tsvangirai in London in June, we have received so many enquiries from all over. Even at this mining conference, fund managers said that there is (South African) R1 trillion set aside for investment in mining in Zimbabwe.We have a lot of iron, which has been mined but cannot be used. We have mountains and mountains of iron ore, which is wanted in Japan and Korea for their motor industries, which we can export immediately and make a lot of money. This can put us in a better position”.
Zimbabwe’s economy is growing despite continuing political uncertainty. Following a decade of contraction from 1998 to 2008, Zimbabwe’s economy recorded real growth of more than 9% per year in 2010-11, before slowing to 5% in 2012, due in part to a poor harvest and low diamond revenues. However, the government of Zimbabwe still faces a number of difficult economic problems, including infrastructure and regulatory deficiencies, ongoing indigenization pressure, policy uncertainty, a large external debt burden, and insufficient formal employment. Zimbabwe’s 1998-2002 involvement in the war in the Democratic Republic of the Congo drained hundreds of millions of dollars from the economy.
The government’s subsequent land reform program, characterized by chaos and violence, badly damaged the commercial farming sector, the traditional source of exports and foreign exchange and the provider of 400,000 jobs, turning Zimbabwe into a net importer of food products. Until early 2009, the Reserve Bank of Zimbabwe routinely printed money to fund the budget deficit, causing hyperinflation. Dollarization in early 2009 – which allowed currencies such as the Botswana pula, the South Africa rand, and the US dollar to be used locally – ended hyperinflation and restored price stability but exposed structural weaknesses that continue to inhibit broad-based growth.
By. Jeff Frisch
New York News