Zimbabwe’s commodity market in 2024 reflects a mix of resilience and vulnerability, shaped by global price movements, domestic production challenges, and macroeconomic instability. The data provided offers insights into key commodities, including precious metals like gold, silver, and platinum, as well as agricultural staples such as maize, wheat, soya beans, cotton, and cow peas.
Gold:
Gold continues to be Zimbabwe’s most significant export commodity, with prices averaging $2,304.87 per ounce in 2024, a notable increase from $1,943.75 in 2023. The highest recorded price in 2024 was $2,672.80, underscoring robust global demand driven by geopolitical tensions and inflation hedging. Zimbabwe produced approximately 30–35 tons of gold in 2023, contributing over $2 billion to export revenues. However, the sector grapples with smuggling and artisanal mining inefficiencies, which divert potential earnings from formal channels. The government’s efforts to incentivize formal gold sales through favorable pricing schemes have yielded mixed results, with illegal trade persisting due to currency instability and high informal market premiums.
Silver and Platinum:
Silver prices have shown an upward trajectory, averaging $27.34 per ounce in 2024, compared to $23.40 in 2023, reflecting increased industrial demand, particularly in renewable energy technologies. Platinum, another critical mineral for Zimbabwe, opened the year at $948.05 per ounce and closed at $981.86, indicating steady but modest growth. Zimbabwe possesses the world’s third-largest platinum reserves, yet production has been hampered by erratic electricity supply and underinvestment in refining capacity. The country’s reliance on raw platinum exports, rather than value-added products, limits its revenue potential.
Agricultural Commodities: Climate and Policy Challenges
Maize, the nation’s staple crop, has maintained a price of $390 per ton in 2024, consistent with levels seen in 2021 and 2020. However, production remains volatile due to recurrent droughts, forcing Zimbabwe to import maize to meet domestic demand. The government’s irrigation initiatives aim to mitigate climate risks, but their impact is yet to be fully realized. Wheat prices have declined, with premium wheat fetching $470 per ton in 2024, down from $520.25 in 2023, likely due to improved local yields from expanded irrigation projects.
Soya bean prices have risen to $620 per ton in 2024, up from $580 in 2023, driven by demand from the poultry and edible oil industries. Conversely, cotton prices have slumped, with Grade A cotton selling at $0.43 per kilogram in 2024, down from $0.46 in 2023, as high production costs and declining global demand discourage farmers. Cow peas, however, have seen a remarkable price surge to $2.66 per kilogram in 2024, nearly double the $1.50 recorded in 2023, attributed to export demand and lower domestic yields.
Structural Challenges and Future Prospects...
