Visiting investment consultants from the United States of America and Canada have implored Zimbabwe to consider setting up a gold reserve bank and introduce a gold currency with a view to attract international capital. Apart from bringing money into the country, the use of gold as a currency could also increase confidence in Zimbabwe’s currency, financial system and ultimately economy.

Local economists, however, said that the lack of reliable information from mineral exploration makes it difficult to use gold to back currency. Another challenge would be the value of the gold which is determined on the world market, which may make the gold backed currency volatile.

An economist with the Africa University, Mr Thomas Masese said that instead of a gold bank to resuscitate or grow the economy, Zimbabwe needs to work on economy hygiene issues such as the cost of doing business, boost production, etc.

Shelter and pipe products manufacturer, Turnall Holdings’ turnaround process which began in September 2014 has begun to pay dividends as it returned to profitability in the year to December 31, 2015. The group posted a profit of $106 938 which was a recovery from a loss position of $11, 9 million in the prior year. The performance was largely due to the group’s decision to diversify its suppliers which resulted in significant cost saving on key inputs especially chrysotile fiber.

Other strict cost control measures include aspects like cost of sales lower at $22, 4 million from $32, 3 million; administration expenses at $3, 8 million, 71% below prior year; financing cost decreased by 6%.

The group is also expecting to reap further rewards from a combination of rightsizing the business, further cost reduction and capturing market opportunities.

The government of Zimbabwe plans to establish 32 gold processing centers in small-scale mining areas around the country to increase their contribution to the national output, a senior government official has said. The centers would offer various services such as gold milling, collection points as well as assisting with Environmental Impact Assessments. Mines and Mining Development deputy Minister Fred Moyo said the centers would be equipped with machinery acquired from China under a Chinese Export and Import Bank credit facility.

“But, freight is on our account, so we are deliberating with the Reserve Bank to see whether they and the Banks Association can come together to raise an amount of $1.5 million which we will use to move the equipment worth $5 million from China to Zimbabwe.”Deputy Minister Fred Moyo said.

He also said Mashonaland West, Mashonaland Central, Midlands and Matabelel South provinces would get the bulk of the gold centers and equipment.

Zimbabwe’s cash crisis is so severe that some banks are no longer supplying US dollars and are only dispensing South African rand, the main Movement for Democratic Change opposition party has said.

Cash shortages, a feature of Zimbabwe’s 2008 economic and political crisis, resurfaced at the beginning of March. Calling the crisis “debilitating”, the MDC said on Saturday that some banks had restricted cash withdrawals from ATMS and tellers.“Clients attempting to secure cash for day to day needs are now confronted with reduced daily limits at ATM’s and tellers in Banks,” party spokesman Obert Gutu said in a statement.

“Some Banks are unable to supply US dollars in cash and instead offer cash Rand. When they do so clients must pay for the cost of exchanging Rand for USD balances and then when they attempt to use the Rand in local markets, they find that they are offered goods at a significant premium to the USD prices.“

Significant job losses in 2015 and a slowdown in industrial activity has meant fewer people are using banks in the southern African country.

The Morgan Tsvangirai-led MDC said illegal money changers had resurfaced on the streets, charging stiff premiums for anyone wanting to buy US dollars, the party charged.

“All of these developments point to an emerging cash crisis which is likely to become much worse in the next few weeks,” said Gutu.

Zimbabwe expects a loan from the International Monetary Fund(IMF) in the third quarter of this year, the first since 1999, after paying off foreign lenders by the end of June, the central bank governor said on Wednesday.

Zimbabwe would also receive an $896 million loan from an unnamed country to pay off arrears to the World Bank. In addition, the African Export-Import Bank would provide $601 million for Harare to clear arrears to the African Development Bank (AfDB). Zimbabwe would then receive the same amount as a grant from the AfDB, Mangudya said.

The worst drought since 1992 has left 4 million Zimbabweans facing hunger and had forced the government to lower its growth target for 2016. Once Zimbabwe clears its arrears, it would be ready for rating by international ratings agencies, with a view to issue international bonds in future, said Mangudya. The government had issued $250 million in treasury bills to raise money for its operations in 2015, Mangudya said, adding that the bank would soon start holding public auctions of treasury bills to enhance transparency in state borrowing.