- Gold Exports Surge: To 37.9% of total exports in August 2024, up from 34.2% in July
- Trade Deficit Narrows: 27.7% decrease in trade deficit to USD 198.7 million in August
- Record Gold Prices: Rallied to a record US$2,660 per ounce on 3oth Sept the biggest since 2016
Harare- Zimbabwe's gold exports made a significant leap in August 2024, accounting for 37.9% of total exports, up from 34.2% in July and 30.5% in June, according to Zimstat's latest data.
May still holds the record for the highest output at 42.8%.
This increase follows the reversal of the 15% Value-Added Tax (VAT) on gold sales, scrapped through Statutory Instrument 105 of 2024 in July.
The removal of VAT, coupled with factors like electricity blackouts, currency fluctuations, and costs, had previously led to reduced gold contributions as producers likely favored side-marketing for higher returns on the international market.
Global gold prices have rallied to a record US$2,660 per ounce in August, marking the biggest quarterly gain since early 2016.
Gold deliveries spiked 37% to 3.4 tonnes in August, up from 2.479 tonnes in the prior comparative period.
The first seven months of 2024 yielded 17.2 tonnes, with May recording the highest output at 42.8%.
Primary producers delivered 8.53 tonnes to FGR during the first eight months of 2024, while small-scale producers contributed 12.133 tonnes.
In August 2024, the top export products were semi-manufactured gold, tobacco, partly or wholly stemmed/stripped, and nickel mattes, accounting for 37.9%, 13.0%, and 9.8% of the total value of USD 674.0 million, respectively.
Nickel ores and concentrates contributed 5.5%, while other ores and concentrates made up 5.3% of the top five.
The surge in gold output led to a 27.7% decrease in Zimbabwe's goods trade deficit for August 2024, which stood at USD 198.7 million, down from USD 274.9 million in July. August exports rose 22.9% to USD 674.0 million, an increase of USD 125.7 million from July.
The narrowing of the deficit gap was also driven by decreased imports of mineral fuels, oil, and products, which dropped to 18.7% from 19.4%.
Cereals imports decreased to 10.8% from 13.4%. The top ten imported products in August 2024 included mineral fuels, mineral oils and products, machinery and mechanical appliances, cereals, and vehicles, constituting 18.7%, 12.9%, 10.8%, and 7.6% of the total import value of USD 872.8 million, respectively.
Overall, gold prices have increased by 28% since the start of the year globally, with primary producers delivering 8.53 tonnes and small-scale producers delivering 12.133 tonnes to FGR during the first eight months of 2024.
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