African governments have been urged to focus on growing intra-African trade and diversifying their economies to stop reliance on commodities to reduce vulnerability to external shocks.

According to a statement from African Trade Insurance Agency (ATI), continued commodity price decline and current geopolitical uncertainties are also affecting trade on the continent. This was at the 17th annual general meeting of African Trade Insurance Agency in Nairobi, Kenya last week.

Speaking at the event, Benin President Patrice Talon and Henry Rotich, Kenya’s Cabinet Secretary for National Treasury, said increased geopolitical uncertainties are a huge challenge for improved trade and growth.

They urged ATI to play a vital role in supporting Africa’s journey toward diversification, self-reliance and more sustainable growth.

In 2016, ATI facilitated financing of trade and investments in Kenya valued at close to $800 million which represents around 1.2 per cent of the country’s GDP.

The agency gave Ethiopia and Zimbabwe support worth $400 million for trade and investment.

“This is a very significant contribution to our economy. It demonstrates real benefit because these financial flows could not have been realised without the support of ATI,” noted Rotich in the statement. The meeting attracted leaders from the public and private sectors across Africa.

ATI, a pan African investment and credit risk insurer, also announced its 2016 results at the event indicating a 36 per cent increase in performance compared to 2015.

The agency attributed the success to stronger partnerships with African governments, “which increasingly see the value of ATI to their growth and development objectives”.

By Roseline Okere

The Federal Government recorded a deficit of $11 billion (N3.3 trillion using the official exchange rate of $305 per dollar) revenue from crude oil export in 2016.

Specifically, the revenue fact sheet released on Monday by the U.S. Energy Information Administration (EIA), revealed that Nigeria’s crude oil revenue fell from the $37 billion recorded in 2015 to $26 billion in 2016.

This comes as Nigeria had already earned $10 billion or N3.05 trillion from oil export between January and April this year, according to the oil and gas revenue fact sheet of the Organisation of the Petroleum Exporting Countries (OPEC).

At the global level, OPEC members earned about $433 billion in net oil export revenues in 2016. This represents a 15 per cent decline from the $509 billion earned in 2015, mainly as a result of the fall in average oil prices during the year, and to a lesser extent to decreases in the level of OPEC net oil exports.

This revenue, according to EIA, was the lowest earnings for OPEC since 2004. The net oil export revenues reflect OPEC members as of May 2017. Nonetheless, the EIA said Nigeria became the sixth highest revenue earner among the 13 OPEC member countries in the 2016 period.

For example, Saudi Arabia occupied the number position with revenue of $133 billion; Iraq, $54 billion; United Arab Emirates, $47 billion; Kuwait, $37 billion; Iran, $36; and Nigeria, $26 billion.

It explained that the net export earnings also included Iran, which the EIA did not include in earlier reports published between 2012 and 2015.

The EIA stated: “However, Iran’s net export revenues are not adjusted for possible price discounts the country may have offered its customers between late 2011 and January 2016, when nuclear-related sanctions targeting Iran’s oil sales were in place. Saudi Arabia earned the largest share of these earnings, $133 billion in 2016, representing approximately one-third of total OPEC oil revenues.”

EIA projects that OPEC net oil export revenues will rise to about $539 billion dollars in 2017, based on projections of global oil prices and OPEC production levels in EIA’s May 2017.

On a per capita basis, OPEC net oil export earnings are expected to increase by about 18 per cent from $912 billion in 2016 to $1.112 trillion in 2017.

The expected increase in OPEC’s net export earnings is attributed to slightly higher forecast yearly crude oil prices in 2017 compared with 2016 as well as slightly higher OPEC output during the year.

For 2018, OPEC revenues are projected to be $595 billion, with an increase in forecast crude oil prices, coupled with higher OPEC production and exports, contributing to the rise in overall earnings.

By Njadvara Musa

Maiduguri — The Nigerian National Petroleum Corporation (NNPC) has concluded arrangement to resume oil exploration in the Lake Chad Basin of Borno State.

The Group Managing Director, Dr. Maikanti Baru, yesterday said that the Nigerian Army has given it a “security clearance” towards this.

Baru stated this when he led top management staff of NNPC on a courtesy call on governor Kashim Shettima at the Government House, Maiduguri.

Represented by NNPC Chief Operations Officer, who is also the Executive Director, Gas and Power, Mr. Saidu Mohammed, said the team wants to have a first hand information on what is happening in Borno State, before resuming oil and gas exploration in the next six-eight weeks in the Basin bordering Niger, Chad and Cameroun..

He said the resumption of exploration in the state, was to increase the country’s oil reserves from 35 million barrels a day (mbd) to 40 million mbd. He, however, noted that these production targets cannot be achieved without resumption of oil and gas explorations in the Lake Chad Basin.

He said: “This is why we initiated the moves to get into the Lake Chad Basin for oil exploration, as we have spoken to the military authorities to commence exploration in the next six-eight weeks. We have assembled our drilling equipment with high technology.”

He called on the community in the Lake Chad Basin to cooperate with NNPC, so that the targeted oil production and reserves could be achieved.

Responding, Governor Kashim Shettima assured that his administration will partner with NNPC to actualize its mission in the basin.

He said when the oil production and reserves targets are met; it will not only generate revenue, but create job opportunities for the unemployed youths in the Northeast and the country at large.

He appealed to NNPC to assist the state government in the reconstructing and rebuilding of thousands of schools and public structures destroyed by insurgents.

He said that the education sector remains the only means of fighting poverty, which is associated with emergence of Boko Haram insurgency.

He put the value of destroyed houses, schools, public buildings, including health, water and power facilities in the Northeast, at $9.6 billion (N3.65 trillion), while Borno State incurred the sum of $5.6 billion (N2.13 trillion).

Dodoma — Minister for Energy and Minerals Prof Sospeter Muhongo has refused to sign the transfer of a mining license from a local investor to a Chinese company Mechanized Minerals Supreme Mining Company Limited.

The local investor, Mr David Stanley owned a plot of about 0.43 Kilometers (Number ML571/2017) located at Fufu area in Chamwino District, in Dodoma region.

Prof Muhongo declined the transfer of the mining plot after he discovered that the deal wouldn’t benefit local investors.

Speaking with mining investors on Monday, Prof Muhongo urged them to ensure that all contracts to be signed were benefitting locals.

He furtherer instructed the Chinese investor–of the Mechanized Minerals Supreme Mining Company Limited to sit at a negotiating table with the owner of the plot–Mr Stanley and figure out how best both investors could benefit from the deal.

“In order for me to sign the transfer, you must agree with the owner in a manner that he will benefit from it, we can’t approve the deal that has little impact to local people,” said Professor Muhongo.

Earlier, the minister was told that, from the transfer, Mr Stanley has pocketed Sh30 million and would be employed to provide cheap labour. In response to that, the minister refused to sign until further consultations between the two parties were made.

The minister went further to direct the commissioner of Minerals Benjamin Mchwampaka to ensure the applicant files a written document, pledging to put national interests first.

For his part, the commissioner Mchwampaka apart from pledging to implement the minister’s directives, he urged investors to comply with the requirements of the Tanzanian’s Mineral Act of 2010.

Investors whose transfers succeeded were Salim Salum who was transferring three mining licenses in Handeni district in Tanga region, Ulanga district, Morogoro Handeni mkoani Tanga to S & T Marble and Mining Limited.

Others are ML 577/2017 of Mbarouk Saleh Mbarouk, Mkuyuni Matombo in Morogoro District.

Furthermore, there was a deal between Tanzania Portland Cement, number ML 575/2017 which deals with limestone at the Wazohill area, in Kinondoni district, Dar es Salaam. The deal will last for a period of ten years.

By Athuman Mtulya

Dodoma — Over 390 large scale industries with a capital flow of $2.3 billion (Sh5.1 trillion) have been established since the fifth phase government assumed office, the Parliament was told on Wednesday.

Presenting his budget speech in the Parliament, the Minister for Industries, Trade and Investment, Mr Charles Mwijage, said the industries had created over 38,860 employment opportunities to Tanzanians.

The minister revealed that Tanzania Investment Center registered 242 new investment projects in a period between July 2016 and March 2017 worth $2 million.

“Out of 242 projects,170 are industries, and 17,385 jobs are expected to be created,” the minister told the Parliament.

The minister also revealed that a total of 1,843 small scale industries have been registered across the country in a period between July 2016 and March 2017.

The industrial sector, according to the minister, grew by 7.8% in 2016 compared to 6.5% in 2015. The sector also contributed 5.1 per cent to the GDP in 2016 compared to 5.2 per cent in 2015.

The minister asked the Parliament to approve Sh122 billion for his office in the 2017/18 financial year.

According to Mwijage, Sh42 billion is for recurrent expenditures and Sh80 billion will be used to implement development projects.

The minister reiterated that the government still believed that the private sector held a crucial role in propelling the growth of industries in the country.

By Samuel Ogundipe

Several top African public officials, scores of businesses and influential business executives on Tuesday called for accelerated action to bridge the gap in the Africa’s infrastructure deficit as part of critical measures required to guarantee improved economic growth for the continent.

At the second day of Africa’s premier infrastructure summit in Abuja, Nigeria’s Acting President Yemi Osinbajo implored private sector players to help relieve Africa from its infrastructure crisis, which experts have long identified as one of the major stumbling blocks to the continent’s economic growth.

“There is no question at all that all of what we required, all of what is needed will not be provided just by government,” Mr. Osinbajo said at the two-day event held to mark the 10th anniversary of Africa Finance Corporation. “As a matter of fact, without the private sector, it is completely impossible for government to even finance current infrastructure needs.”

Investment analysts on the continent hold that its inhabitants could witness spontaneous economic success if anything can be done to address an estimated $90 billion in infrastructure deficit.

Mr. Osinbajo submitted that the role of private sector in helping Africa address its critical needs surpasses the capacity of government institutions.

“There is no question at all that government cannot simply compare with the power of the private sector and with the resources that the private sector can pull together,” Mr. Osinbajo said while delivering his keynote speech themed: ‘Infrastructure Revolution.’

The event drew many top public and private sector officials from different places across Africa, including former Nigerian President Olusegun Obasanjo who praised the exploits of AFC over the past 10 years while expressing optimism about its future.

The AFC is an international, for profit investment grade multilateral finance institution established to bridge Africa’s significant infrastructure gap.

The AFC, which was established in 2007 by Mr. Obasanjo’s administration, has raised $3.5 billion as at the end of last year, while declaring a profit of $150 million to shareholders, its President and CEO, Andrew Alli, said in a statement

Its debut $750 million Eurobond issue was oversubscribed six times. And it currently maintains presence in 13 African countries including Nigeria (host country), Guinea-Bissau, Sierra Leone, The Gambia, Liberia, Guinea, Ghana, Chad.

The others are: Cape Verde, Uganda, Rwanda, Gabon and Djibouti.

Mr. Obasanjo expressed confidence in the ability of AFC executives to position the investment firm at the forefront of African infrastructure rebirth.

“If all things go well, I see an AFC that would have triple or quadruple its investment in infrastructure in Africa,” Mr. Obasanjo said during a panel discussion. “I see an AFC that would become a household name everywhere in Africa. I see an AFC that would be competing, or if you like complementing, the World Bank’s equivalent –which is IFC– if not overtaken it.”

The former president urged the AFC to sustain its current exploits in order not to derail like many other African initiatives.

“In Africa, we start things right but we don’t continue to do them right,” he said.

Mr. Obasanjo was joined in his call by Charles Soludo, a former governor of the Central Bank of Nigeria who was also the first chairman of AFC, and Tony Elumelu, a former CEO of United Bank for Africa and chairman of Heirs Holdings.

The duo participated in a panel discussion with Mr. Obasanjo, during which they expressed optimism about growth in African infrastructure.

Several business executives at the event, tagged AFC Live 2017, included Aigboje Aig-Imoukhuede, President of Nigerian Stock Exchange; Samuel Dossou-Aworet, Founder and Chairman of Petrolin Group; Kunle Elebute, Country Managing Partner at KPMG and Jay Ireland, President and CEO, General Electric Africa.

Government officials present at the event included Raji Fashola, Minister of Power, Works and Housing; Godwin Emefiele, Governor, CBN; and Kemi Adeosun, Minister of Finance.

All the participants identified infrastructure deficit as a major hindrance to Africa’s economic development and called for public-private partnership to bridge the gap.

Rwanda Information Society Authority (RISA) has pledged stronger cooperation with the public in enhancing cyber security for all computers in Rwanda amid an alert over an outbreak of a security attack that has affected over 150 countries.

According to a statement, the cyber security attack is known as ransomeware and bears different variations like WannaCrypt, WannaCry, WannaCryptor or Wcrya.

The broad based ransomware attack has appeared in at least eight Asian nations, a dozen countries in Europe, Turkey and the United Arab Emirates and Argentina and appears to be sweeping around the globe, researchers said.

“It is also important to bring to your attention that the cyber-attack mostly affects computers that run Microsoft Operating Systems, by automatically encrypting the files and blocking the user’s access to the entire system,” it reads in part.

Over the last decade Rwanda’s strong growth through ICT promotion has brought untold opportunities and prosperity in the country. And as we globally face this challenge in cyber security, as a country we strongly believe that an integrated strategy to ensure effective regulation to our cyber security is significant at this point.

To mitigate this outbreak, RISA in the statement gave a set of actions to ensure lasting national prevention and protection:

1. Users are required to maintain daily backups of critical data including application, databases, mails systems, and user’s files. Backups should be regularly tested for data restoration.

2. All computers should be installed with latest security updates (specifically including MS17-010. Patch)

3. Until the security patch is applied, the Server Message Block v1 (SMB v1) should be disabled on all computers. (Refer to the following link: https://support.microsoft.com/en-us/help/2696547/how-to-enable-and-distable-smbv1-smbv2,-andsmbv3-in-windows-vista,-windows-server-2008,-windows-7,-windows-server-2008-r2,windows-8,-and-windows-server-2012)

4. The LAN perimeter firewall should be configured with a rule to block all incoming SMB traffic on port 445.

5. All computers should be upgraded to Windows 10 to benefit from the latest protection from Microsoft. The Windows Defender Antivirus, which can detect the above malware, should also be enabled on all Windows systems.

6. Ensure your Antivirus signatures are up to date as major vendors are all working to deliver updated signatures to detect/ prevent this.

7. All users are advised not to open any suspicious email especially one that have an attachment, furthermore all users are advised not to download any files that they are not sure of the source.

“We are taking comprehensive action to strengthen our information and communications technology sector countrywide. However, in case of any compromise or attack, RISA advises that the affected computer/PC must be removed from the network and the incident must also be reported to Rwanda Computer Security Incident Response team with immediate effect. (Hotline 4045/ Email: security@rdb.rw),” it says.

Who is behind this cyber-attack?

WannaCry exploited a vulnerability in the Windows operating system believed to have been developed by the United States’ National Security Agency (NSA), which became public last month.

It was among a large number of hacking tools and other files that a group known as the Shadow Brokers released on the Internet. Shadow Brokers said that they obtained it from a secret NSA server.

The identity of Shadow Brokers is unknown though many security experts believe the group that surfaced in 2016 is linked to the Russian government.

By Aggrey Mutambo And George Omondi

Kenya is seeking an additional Sh370 billion ($3.59 billion) Chinese loan to extend the standard gauge railway (SGR) from Naivasha to Kisumu, pushing the total cost of President Uhuru Kenyatta’s pet project to Sh847 billion.

The President today led the Kenyan delegation in making a formal request for additional funds from China Exim Bank.

The money will finance the construction of the third phase of the SGR, a 270km-line between Naivasha and Kisumu.

“The funding request will undergo normal procedure of approval and Premier Li (Keqiang) has promised to give it the adequate consideration and urgency it deserves,” State House Spokesman Manoah Esipisu told reporters in Beijing, where the President has been attending a trade conference.

NATION IN DEBT

So far, Sh327 billion has been spent on the first phase between Mombasa and Nairobi and Sh150 on the Nairobi-Naivasha section.

With a national population of about 46 million, every Kenyan is set to owe China Sh18,413 in SGR debt once the deal is sealed.

The money does not include the interest charged.

The additional funding implies that each kilometre of the third phase of SGR will cost Sh1.37 billion, almost twice the Sh693 million per kilometre rate for the Mombasa-Nairobi line.

The Nairobi-Naivasha line will cost more, at about Sh1.5 billion per kilometre.

UGANDA RAILWAY

The Chinese loan used on SGR is expected to cross the Sh1 trillion mark by the time the Kisumu section is extended to Malaba, a distance of 107 kilometres, according to Kenya Railways.

By comparison, Uganda, which is also negotiating a Chinese loan for the Malaba-Kampala section, estimates its unit cost at Sh865.2 million per kilometre.

The Chinese Exim Bank has predicated the loan to Uganda on condition that it connects its line to the Kenyan SGR.

The port of Mombasa has handled an average of one million containers per year in the past three years, with most of its transit traffic heading to Uganda

FARE

Mr Esipisu appeared to play down the economic viability of the project, saying the completion of the Naivasha-Kisumu section would influence neighbours to take on the project.

The Transport ministry says the SGR train tariffs will adequately cover the cost of the loan, operating profit and public revenue without burdening the users.

The ministry says the trains will charge as low as half of the current bus fare for the third-class package.

In a series of agreements reached between President Kenyatta and Chinese Prime Minister Li, Kenya also allowed the Chinese to manage the security and operations of the completed version of the SGR line between Mombasa and Nairobi.

SECURITY

The meeting between Mr Kenyatta and Mr Li was on the sidelines of the Belt and Road Forum, a programme by the Chinese to expand influence through trade by building infrastructure in a network of more than 60 countries in Asia, Europe and Africa.

President Kenyatta, in another meeting, met with his Chinese counterpart Xi Jinping, who will be sending a “special envoy” for the launch of SGR.

On Monday, Kenya admitted it would be unable to handle the security operations of the SGR and asked China to stand in.

The two leaders agreed to elevate the railway to “a specialised security installation” to be managed by the Chinese “until our capacity to manage operations is enhanced”.

TRADE EXPANSION

The idea, according to Mr Esipisu, is to ensure it runs smoothly and is without incidents.

Few details were provided concerning the exact role of China, but State House said the Chinese would handle scheduling systems, monitoring of the line, installation of security surveillance and training of local staff to take up these duties after several years.

The SGR has been President Kenyatta’s pet project since he came to power.

Though criticised by some economists for creating huge debt, President Kenyatta argued before this trip that the railway line is the first step to open up Africa to integration and expand trade.

“I don’t think it is Kenya’s railway. It belongs to Africa,” he had argued last week.

By Edward Ssekika

Government has ruled out capping interest rates as one of the proposals from borrowers who needed cheaper credit.

David Bahati, the minister of state for Planning, said capping interest rates is not a solution.

“We are not going to cap interest rates because it doesn’t work. It has not worked in Kenya and it has not worked anywhere,” he said.

He added that government can only regulate the high interest rates, although he did not explain how it can be done. Bahati was speaking at the 7th Annual High-Level Policy Dialogue on the Budget under the theme, “Unlocking Uganda’s economic potential: Investing in strategic sectors of the economy” at Sheraton Kampala hotel recently.

The conference was organized by the Advocates Coalition for Development and Environment (ACODE) and the ministry of Finance, Planning and Economic Development.

The business community has been pushing government to cap interest rates to affordable levels. Interest rates in Uganda hover around 23 per cent, which is quite high compared to the return on investment that many companies make. Last year, Kenya capped interest rates in order to protect borrowers.

RECAPITALISING UDB

Instead of capping interest rates, Bahati said government plans to recapitalize the Uganda Development Bank (UDB) to provide affordable credit to borrowers.

He revealed that government is to inject Shs 300 billion into UDB in the next five years. Next financial year, which starts on July 1, UDB will be recapitalized by Shs 50 billion.

Dr Ezra Suruma, the keynote speaker and former minister of Finance, Planning and Economic Development, attributed the collapse of many businesses to high interest rates.

He said the high interest rates have something to do with the structure of the economy and have been responsible for the collapse of many businesses. He implored government to make available affordable and long-term credit to the private sector.

“Until the money is finally injected in Uganda Development Bank, I will not believe you. This is what we have been pushing for over the years,” he said.

He also advised government to improve on the capital markets so that Ugandans can safely invest in them. Suruma also proposed that “some of the money from oil should be used to start new special banks like an agricultural bank and an infrastructure bank, among others. This will stimulate growth and financial inclusion.”

The Public Finance Management Act, 2015 says that the money from oil shall be used to finance infrastructure projects. Bahati also said that although the economy has not grown as projected, it is expected to recover.

This financial year, the economy is expected to grow below 4.5 per cent instead of the projected five per cent. He attributed this to regional instability, especially in South Sudan, and the drought which has ravaged the agricultural sector. South Sudan is one of Uganda’s main export destinations.

Bahati was optimistic that the economy is expected to again grow at six per cent annually after the next financial year. Bahati said in the next financial year, government plans to reduce on domestic borrowing through the issuance of securities such as treasury bills and treasury bonds.

Currently, he said, domestic arrears stand at Shs 2.7 trillion. This has crowded out the private sector from the financial market since banks prefer to lend to government than private businesses.

Keith Muhakanizi, the secretary to the Treasury, warned against excessive borrowing.

“We must not put the country into a debt crisis.”

He added that the pressure for borrowing is too much and that if this appetite is not curtailed, it could put the country into a crisis, to a point where the country will not be able to repay the loans.

Suruma advised government to invest in sectors such as agriculture for inclusive growth. He gave the example of the coffee industry that he said has the capacity to bring in more money than oil, and can directly benefit households.

He said government should invest more money if the country is to achieve its target of producing 20 million bags of coffee annually by 2020.

OIL SECTOR

On the oil sector, the Danish ambassador to Uganda, Mogens Pedersen, warned that if stern action is not taken to fight corruption and promote inclusive growth, Ugandans should forget the anticipated benefits from the oil industry.

He warned that Uganda is headed on the path that many African countries have taken of abundant oil resources amidst poverty.

“Please, tell me one African country, where oil has been a blessing. It is always a curse for inclusive development, mainly because of corruption,” he warned.

Uganda discovered commercial quantities of oil in 2006 and efforts are underway to start oil production by 2020. Bahati assured the audience that Uganda is going to be an exception from those African states where oil has been a curse.

“You are going to see Uganda; our oil will not be a curse. All the systems have been put in place to ensure oil is a blessing for Uganda. That is why we have been cautiously slow,” he said.

Bahati said the country is looking at oil to solve its financial woes, including cutting down on borrowing.

“As government, we believe by 2020 we shall see first oil production, which is going to give us $2 billion annually [approximately Shs 9 trillion]. So, we shall be able to solve some of these challenges,” he explained.

Bahati said this financial year, government plans a massive investment in the oil sector to ensure first oil by 2020.

“We are going to invest at least Shs 1.1 trillion in the sector in order to realize the first oil target of 2020,” Bahati explained.

However, Elly Karuhanga, the chairman of Uganda Chamber of Mines and Petroleum (UCMP), asked the government to put in place a team that will make first oil a reality.

“Let us put in place a team, a dream team comprised of genuine government officials and the private sector, which will be charged with the duty to implement the oil project and en- sure first oil by 2020,” he said.

Short of that, Karuhanga doubts whether the 2020 oil target will be met.

By Walter Nyamukondiwa

Chinhoyi — Government is working on a plan to establish a gold reserve set to anchor the introduction of a local currency when the right time comes for the return to the Zimdollar, it has been learnt.

This comes at a time when the country is grappling with cash shortages and economists believe the issuance of a gold backed local currency would help stimulate economic activity.

Modelled around the $200 million Afreximbank facility, which is backing the current bond notes in circulation, economists believe the local currency will ease liquidity challenges and stimulate aggregate demand.

Plans to create a gold reserve involve investing in the efficient operations of Government’s gold mining firms, including Sabi, Elvington and Jena gold mines.

Sabi Gold Mine resumed operations recently with targets to produce about 25kg of gold per month after a five-year hiatus caused by working capital constraints.

Mines and Mining Development Minister Walter Chidhakwa said the gold reserve would complement the Sovereign Wealth Fund, where a set of minerals would be reserved for future generations.

The legal processes that will give effect to the fund are still before Parliament.

“Naturally, in order to support the future introduction of our own currency, you want to have mineral resources that you hold in reserve,” said Cde Chidhakwa.

“We have discussed this matter with the Reserve Bank of Zimbabwe and what we are doing now, because most of the gold that is currently held is in private hands, we need to get our own companies operating.”

Government has full or part control of Sabi, Jena and Elvington gold mines, which have not been operating in recent years due to lack of capital.

Effort has been expended to resuscitate the companies, which are at varying levels of fruition.

Once all the companies owned by Government start operating, Minister Chidhakwa said they would be required to set aside part of their gold output to be kept as reserve by the RBZ.

He said Jena Gold Mine would soon take delivery of mining equipment to bolster its resuscitation, while other options were being looked at to bring on stream Elvington Mine in Chegutu.

This follows delivery of $7 million worth of equipment to the Zvishavane based Sabi Gold Mine.

Confederations of Zimbabwe Industries president Mr Busisa Moyo said a gold backed currency was a sound economic intervention.

“If it is along the lines of the Afreximbank facility, then it will give a lot of credibility to the currency because there is depressed demand for goods and products as people have no cash,” said Mr Moyo.

Demand, he said, should be at its highest owing to activities at the tobacco auction floors, but shortage of cash had dampened economic activity.

There are reports that some foreigners are taking advantage of liquidity constraints to bring in money and buy gold.

Some gold miners, including informal ones have in recent days been reported to be channelling their gold to the parallel market.

Minister Chidhakwa said contingent measures were being put in place to ensure that miners got their money as soon as they delivered to Fidelity Printers and Refiners.