APC Ogun Central District Senator Ibikunle Amosun has completed his two terms as governor of Ogun State in 2015 and is now eyeing Nigeria's top ... political office. That means he will be battling heavy weights such as Vice President Yemi Osinbajo and Lagos godfather Asiwaju Bola Ahmed Tinubu for the party’s presidential ticket. How likely is he to win? We break down the top 10 things to know about Amosun.
On 1 April, an investment consultant from the US advised monetary authorities in Harare to consider the gold reserve bank and gold currency path. The gold bank and currency could be linked to a gold debit card and finance it through economic citizenship.
Chairman of Casey Research, Doug Casey said the gold reserve bank could become an international gold bank attracting deposits worldwide. The bank, he said, would then convert the amounts deposited into gold using prevailing market rates.
“If you set up a gold bank in this country, all the people (Zimbabweans) become shareholders and it will be possible to raise maybe as little as a $100 million on the world market and that will capitalise the bank,” Casey is quoted saying by the state-run Herald newspaper.
“People could deposit their euros and dollars into the gold bank and the bank will buy gold and convert the currency into gold. This is how the gold bank is built.”
With commodity prices currently volatile, Casey did not explain how a country like Zimbabwe could face such headwinds. A major handicap, too, is that the country is not aware of the quantum of minerals it has, as there has not been enough exploration.
Lack of reliable information from exploration makes it difficult to use gold to back currency, Ministry of Mines and Mining Development officials say. Zimbabwe has abundant gold deposits, but no currency of its own.
A few years ago, the central bank mooted adopting a gold-backed Zimbabwean dollar warning that the US greenback’s days as the world’s reserve currency were numbered.
The government ditched the Zimbabwe dollar in 2009 after it had been rendered worthless by record inflation levels and adopted multiple foreign currencies with the US dollar, the South African rand and the Botswana pula being the most widely used.
Gold output is expected to reach 18.7 tonnes from last year’s 15.3 tonnes.
Gold production dropped to 3 tonnes at the height of an economic crisis, which subsided in 2009, a figure far below the 10 tonnes required by the bullion association.
At its peak in 1999, Zimbabwe produced 27 tonnes.
Understand Africa's tomorrow... today
We believe that Africa is poorly represented, and badly under-estimated. Beyond the vast opportunity manifest in African markets, we highlight people who make a difference; leaders turning the tide, youth driving change, and an indefatigable business community. That is what we believe will change the continent, and that is what we report on. With hard-hitting investigations, innovative analysis and deep dives into countries and sectors, The Africa Report delivers the insight you need.View subscription options