Earlier in March, reports showed that Ghana had begun
exploring alternative export routes for its gold shipments amid persistent
tensions in the Middle East. Over in Southern Africa, Zimbabwe is facing a
similar challenge owing to the same problem.
- Ghana
and Zimbabwe are both facing difficulties exporting gold due to
disruptions in Middle Eastern trade routes. - The
UAE is a critical destination for gold from both countries, with 45% of
Zimbabwe’s gold export revenue coming from there last year. - Shipping
disruptions have forced vessels to reroute around the Cape of Good Hope,
increasing transit times and raising costs. - Container
shipping rates have risen sharply, notably those between Turkey and China,
impacting the profitability of exports.
Ghana’s logistical challenge stemmed from disruptions in
flights to the United Arab Emirates, which has long been an important center
for Ghanaian gold shipments.
The UAE’s relevance to Africa’s gold market has yet again
been highlighted, given that it is also a prominent destination for Zimbabwe’s
gold shipments.
The Middle Eastern country accounted for 45% of Zimbabwe’s
total gold export revenues last year, according to a report to the Ministry of
Industry and Trade.
As a result, the ongoing war in the broader Middle East has
taken a toll on the gold trade between Zimbabwe and the UAE.
As seen on BitGet, typical maritime routes have been
hampered by the ongoing conflict, and major ships like Maersk have suspended
operations through the Strait of Hormuz.
Consequently, vessels are rerouted around the Cape of Good
Hope, adding roughly 10 to 14 days to cargo transit times between Asia, Europe,
and the United States.
Shipping expenditures have escalated significantly; notably,
container rates for routes between Turkey and China have increased from $2,000
to $10,000.
Industry specialists characterize the current environment as
highly volatile, noting that the disruptions extend beyond petroleum to affect
a broad range of other commodities.
This reduces profit margins and complicates operational
planning for Zimbabwean exporters due to increased transportation costs and
longer wait times for imported materials.
Complications in the Southern African country’s gold exports
are also internal.
In November last year, Zimbabwe raised royalties on gold
producers as it sought to capitalise on record-high bullion prices, according
to the country’s 2026 national budget statement.
Under the new revenue policy, gold miners are required to
pay a 10% royalty when prices exceed $2,501 per ounce.
The adjustment was touted as part of broader efforts to
boost state income and strengthen local industry, a measure that may become a
hassle for gold producers currently struggling to ship their products.
The move also came at a time when gold prices slipped 5%
from the all-time high of $4,381.21. – Business Insider Africa