President Emmerson Mnangagwa has staunchly defended the newly launched gold-backed ZiG currency, asserting that it exemplifies his government’s commitment to harnessing national resources.
Mnangagwa made these remarks during the commissioning of the Pickstone Peerless Mine Underground Mining Project in Mashonaland West Province.
His statement comes in the wake of criticism surrounding the introduction of the new currency, with some labelling it a failure.
“The decision to anchor our currency with our gold and strategic mineral reserves underscores the resolve of the Second Republic to utilize the assets of our nation, Zimbabwe, to propel our journey towards achieving sustainable economic autonomy and sovereignty,” stated Mnangagwa.
“As we advance in the development of our beloved nation, it is imperative that we take pride in our distinctive Zimbabwean heritage, which includes our minerals and our currency,” he added.
The introduction of the ZiG currency comes as a replacement for the ZW$, which had lost its value due to rampant inflation. Originally established at a 1:1 exchange rate with the US dollar in 2016, its value deteriorated significantly, reaching a staggering 1:25,000 ratio before its demonetization last week.
Despite concerns and skepticism surrounding the new currency, with many fearing a repeat of the challenges experienced with bond notes, Mnangagwa hailed its launch as “historic and unparalleled.” ZiG notes and coins are slated to enter circulation on April 30.
Against this backdrop, Mnangagwa emphasized the importance of leveraging the country’s mineral resources to achieve enduring economic independence and sovereignty.
Meanwhile, significant investments have been made in the Pickstone Peerless Mine, with a US$22 million infusion for phase one of mining operations and an additional US$28 million for phase two, aimed at enhancing underground infrastructure for expanded exploration and mining activities.
Mnangagwa highlighted the projected annual gold production of over 1 tonne, amounting to approximately US$60 million, as a testament to the anticipated surge in gold output.