Zimbabwe bets on gold to avoid economic collapse

View of Harare, capital of Zimbabwe.

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2 min

In Zimbabwe, the coronavirus crisis has further pushed down an economy that had already been on its knees for decades.

Harare is now betting on gold to start the way out of the crisis.

But even if the yellow metal has gained in value since the start of the pandemic, it alone will not be enough to trigger an upward curve in growth over time.

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The global health crisis and its economic consequences have led

, passing for the first time the symbolic mark of 2000 dollars an ounce, last August.

All that was needed was for Zimbabwe to hope to take advantage of it to begin a recovery in a battered economy.

But the lucrative income from the yellow metal will not be a miracle cure.

At best, they will be able to avoid collapse, in a country still plagued by corruption, grappling with hyperinflation, marked by the lack of cash, the shortage of fuel or the lack of water and electricity. .

Fight against illicit trade

The mining sector usually accounts for 60% of Zimbabwe's exports.

This sector will go from a contraction of 4.1% this year to a growth of 7.7%, according to the projections of the Ministry of Finance.

This increase will be largely driven by sales of the yellow metal.

But Harare must also fight to end the illicit trade in gold.

The government has established rules to try to reduce losses in the gold industry.

These measures which are unlikely to be applied, according to many observers.

And even if successful, Zimbabwean officials will have to wait before regaining their purchasing power.

The average salary has in fact been divided by ten for two years.

► Read also: Zimbabwe: the economic crisis is worsening

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