Chronicle Editor
Nqobile Bhebhe, Senior Business Reporter
FINANCE and Economic Development Minister, Professor Mthuli Ncube, yesterday projected that the country’s export earnings would reach US$7.3 billion by year end, spurred by mineral commodity price boom and increases in agriculture and manufacturing.
Presenting his Mid-Year Monetary Policy Review and Supplementary Budget, Professor Ncube said merchandise imports were similarly projected to reach US$8.1 billion driven by fuel, machinery and raw materials.
“Merchandise exports and imports increased by 33 percent and 15 percent to US$3 516.5 million and US$3 746.8 million, respectively, during the first half of 2022, compared to the same period in 2021.
“To year-end, exports are expected to reach US$7.3 billion, spurred by increases in mineral receipts benefiting from the mineral commodity price boom, as well as increases in agriculture and manufactured exports,” said the minister.
He said imports were also projected to reach US$8.1 billion driven by fuel, machinery and raw materials.
“As a result, the country’s balance of payments remains favourable with a current surplus of US$387.1 million having been registered during the first half of 2022.
“The positive current account performance is envisaged to continue for the remainder of the year to close at US$366.3 million on the back of strong export performance and resilient remittance inflows,” said Prof Ncube.
The country earns its foreign currency mainly from mineral and agricultural produce exports, diaspora remittances and development partner support.
The extractive sector is among the top growth drivers as enshrined in the National Development Strategy1 (NDS1) (2021-2025).
The main minerals expected to lead growth of the mining sector include gold, platinum group metals (PGMs), chrome and ferrochrome, nickel, diamonds, lithium, coal and hydrocarbons.
The gold sector holds the bulk of the value in terms of the US$12 billion target as it is expected to earn US$4 billion representing one third of the total value.
Platinum group metals (PGMs) follow behind at US$3 billion, chrome, iron and steel US$1 billion, diamonds US$1 billion, coal US$1 billion, lithium US$500 million and other minerals US$1,5 billion.
Officially opening Mine Entra last week, President Mnangagwa said the country’s mining sector is registering unprecedented growth, for the first time in history, with earnings jumping to US$5,2 billion in 2021 from about US$2,9 billion in 2017 when the New Dispensation came into being, which is indicative of the positive gains realised from Government’s economic reform agenda.
Official statistics already indicate the sector is poised to clock US$8 billion in earnings by the end of the year, having surpassed the US$6 billion mark last month.
Online Reporter