ZIMBABWE NETZWERK e.V.

Zim mining sector: all that glitters is not gold

Ritesh Anand writes in Zimbabwe Independent: " The mining sector plays a significant role in Zimbabwe's economy. The sector accounts for over 15% of GDP, generates over US$2 billion in exports (58% of total exports), contributes over 13% to the fiscus and employs over 45 000 people. There is no doubt that the mining sector plays a critical role in the development of the country. So what is the outlook for commodity prices and when do we expect commodity prices to recover? According to South African economist Mike Schussler, if you believe that history repeats itself, then you may feel vindicated by analysing the Economist's All Commodity Price Index for the last 130 years. The trend is depressing and if history is to repeat itself and the world follows the last four cycles since 1887, commodity prices are likely to remain suppressed for another 15 years or so. ...".