Sunday, July 14, 2024

Zimbabwe announces the discovery of oil

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Isaac Kaledzi
Isaac Kaledzi
Isaac Kaledzi is an experienced and award winning journalist from Ghana. He has worked for several media brands both in Ghana and on the International scene. Isaac Kaledzi is currently serving as an African Correspondent for DW.

Zimbabwe has announced the discovery of oil wells in Muzarabani, north of the country.

The country’s President Emmerson Mnangagwa made the announcement on Thursday at a media briefing.

He said that the discovery was made in partnership with the Australian energy company Invictus. In a statement president  Mnangagwa said its still too early to know the impact the discovery will have on the economy.

The statement said oil wells will be sunk in 2020. Zimbabwe can only know the potential of this new sector once commercial drilling begins.

Zimbabwe’s economy has for years been in a bad state. Foreign sanctions have also played their part in crippling the economy.

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President Mnangagwa last month blamed the crisis partly on “wanton illicit currency deals happening in what is known as the black market.”

President Mnangagwa promised to restore the economy back on track but doesn’t seem to have gotten the solutions yet.

The local currency in theory has the same value as the US dollar. It has been in free fall in recent weeks, raising fears of a return to the hyper-inflation that wrecked national finances in 2009.

Current economic crisis has prevented most shops from stocking their shelves. This is due to panic buying with fast food chains also announcing a halt in their businesses.

The government has introduced taxes on electronic transactions while battling shortage of fuel. A two-cents, tax for every dollar of electronic payments was introduced last month.





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