ZIMBABWE recorded a 17, 9 percent increase in foreign currency receipts in the first nine months of 2024, with the inflows reaching US$10 billion compared to US$8,5 billion during the same period in 2023.
Export receipts accounted for 59 percent of the total foreign currency inflows, highlighting the country's strong performance in international trade, while diaspora remittances continue to make significant contributions to the economy, after accounting for 25 percent of the total receipts.
The total value of merchandise exports reached US$5,4 billion, representing an increase of 3,3 percent compared to the same period in 2023.
This positive export trend can primarily be attributed to significant growth in the exports of gold and tobacco, which showed strong demand in international markets.
Specifically, mineral exports rose to US$4,2 billion in 2024 from US$4,1 billion in the first nine months of 2023.
However, this growth remained subdued due to depressed market prices of platinum group metals (PGMs) and lithium, which are experiencing fluctuations that impact their overall export performance.
In contrast, gold exports displayed a surge, with a substantial increase of 16,7 percent, elevating their value to US$1,5 billion.
This boost is attributed to several factors, including increased production levels and an uptick in global gold prices.
The current demand for gold has been particularly strong as investors seek safe-haven assets amid ongoing global economic uncertainties, further contributing to the favourable conditions for gold exports.
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As one of the major producers of gold in the region, Zimbabwe also benefited from the rising global price of gold, which is crucial for supporting the country's import needs and for the accumulation of foreign currency reserves.
The increased valuation of gold provided additional financial stability, buttressing the overall positive trend in foreign currency earnings.
Going forward, projections for total merchandise exports by the year's end indicate an expected increase of 2,8 percent, with the projected value rising from US$7,2 billion in 2023 to US$7,4 billion in 2024.
This anticipated growth will largely be driven by continued surges in the exports of gold and tobacco products, reflecting their critical roles in the country's export economy as global markets continue to evolve.
"Zimbabwe recorded a 17,9 percent increase in foreign currency receipts to US$10 billion in the first nine months of 2024 from US$8,5 billion received during the same period in 2023.
"The growth was primarily driven by export receipts and diaspora remittances which accounted for 59 percent and 25 percent of the total receipts, respectively," said Finance, Economic Development and Investment Promotion Minister, Prof Mthuli Ncube, while presenting the 2025 National Budget at New Parliament Building in Mt Hampden, on Thursday.
The strong growth in foreign currency receipts has had a beneficial effect on Zimbabwe's balance of payments position.
