Zimbabwean Nickel Exports Faced Challenges from Foreign Competition in 2012
What happened
In 2012, Zimbabwean nickel faced significant challenges from foreign imports. According to a 2004 account by General Manager Ranganai Chinamatira, the central bank governor had increased import duties over 100-fold and raised electricity rates at the time. At the exchange rate of Z$5 600 to US$1, Zimbabwean nickel exports could not compete with nickel from Botswana, Russia, or China.
From insiderzim.com
Why it matters
The challenges faced by the company included operational issues, as it was only running two of its four mines. Furthermore, the company faced difficulties accessing cheap central bank funds due to exclusions for companies that paid dividends to their shareholders.
From insiderzim.com
Who's involved
- ZimbabweThe sovereign state whose exports were under scrutiny.
- Reserve Bank of ZimbabweThe central financial authority whose policy actions were questioned.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Democratic Republic of the CongoSpeculative
The Democratic Republic of the Congo might face impacts from global nickel market pricing.