Zimbabwe Losing $1.5-bln Gold A Year To Smuggling: Report
Mohammad Ali (@ChaudhryMAli88) Published November 25, 2020 | 02:00 AM
Harare, (UrduPoint / Pakistan Point News - 25th Nov, 2020 ) :A report published Tuesday by a global research group estimated that cash-strapped Zimbabwe is losing at least $1.5 billion a year through the smuggling of gold, mainly to traders in Dubai.
The figure is higher than the government's own estimates of $1.2 billion a year lost through the illicit gold trade "Estimates suggest that more than $1.5 billion worth of gold leaves Zimbabwe illegally each year, often ending up in Dubai," said the report by the International Crisis Group.
"Some dealers estimate that illegal exports top official deliveries," to the country's formal refinery.
The landlocked southern African country boasts vast gold reserves, and the sector accounts for 60 percent of Zimbabwean exports.
Last month, the head of Zimbabwe's artisanal and small scale mining federation was arrested with six kilos (13 Pounds) of gold worth over $360,000 (305,000 Euros) in her hand luggage just before boarding a flight to Dubai.
The gold sector provides jobs to nearly 10 percent of the country's population, according to the report.
"Amid the collapsing economy, an estimated 1.5 million people have turned to artisanal mining as a safety net," said the report, adding poverty and the fallout from the Covid-19 pandemic will likely drive more people towards the sector.
According to official figures, gold production in the first eight months of 2020 rose 10 percent, driven especially by output from small-scale miners.
But the miners are not happy with a payment system which requires them to sell their gold to the state-owned buyer, Fidelity Printers and Refiners.
They are paid 55 percent in foreign Currency, with the remaining 45 percent in Zimbabwean Dollars, which is notorious for its weakness.
"Zimbabwe's centralized gold-buying scheme underpays producers, a practice that encourages smuggling and erodes industrial mining profits, leading companies to close mines," said the ICG.
The idle industrial mines have become "targets for intrusion by artisanal miners", it said.
Last year a wave of violence rocked the artisanal mining sector.
Recent Stories
PTI to stage nationwide protests against alleged electoral frauds
Senate continues discussion on Presidential address to Joint Sitting of Parliame ..
Masood Khan calls for Pak-US cooperation for regional peace
Interior Minister starts Margalla Trail Patrol for security
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 26 April 2024
Today Gold Rate in Pakistan 26 April 2024
ICC Womens T20 World Cup Qualifier, Match 2: Ireland Women open with Comfortable ..
Robinson, bowlers help New Zealand go 2-1 up against Pakistan
Shahzeb Chachar to hold khuli kachehri on April 26
Heatwave amid Israel's aggression in Gaza brings new misery, disease risk
Tourism must change, mayor says as Venice launches entry fee
Court adjourns Judicial Complex attack case till May 17
More Stories From Miscellaneous
-
Modern Education Techniques: A pathway to achieve economic development
6 hours ago -
Kite Flying: From cultural festival to deadly sport
6 hours ago -
PDMA predicts gusty wind, rain with thunder, hails
3 days ago -
Iranian president Raisi given guard of honour at PM House
4 days ago -
Intellectuals, writers accolades Naseer Mirza on his literary contribution
5 days ago -
Bahawalpur Adabi Sangat hosts memorable mushaira
5 days ago
-
Cattle farming vital to alleviate poverty in rural areas
5 days ago -
Pakistan: A land of tourism, archeological wonders
5 days ago -
Transforming education sector: from job hunters to job creators
7 days ago -
Amjad Bobby remembered on 19th death anniversary for timeless contributions to music
11 days ago -
Legendary actor Nadeem’s 26 films released on Eid-ul-Fitr days in 50 years
12 days ago -
Besant Hall Cultural Centre to celebrate evening with Sanam Marvi on 26 April
12 days ago