A dollar shortage that has sparked outrage from mining companies operating in Zimbabwe is a “short-term problem” that will be remedied by a stronger economy, the mines minister told Reuters.

Police officers watch as the mining truck drives past at
the chrome proccessing plant, 50 kilometers outside
Kwekwe, central Zimbabwe

Zimbabwe is suffering acute shortages of U.S. dollars, deterring foreign capital from helping the ailing economy recover after 20 years of economic hardship under former leader Robert Mugabe.

“The situation at the moment is demand for foreign currency is bigger than supply and essentially as the economy advances you will find that there will be interest in foreign currency generation,” Winston Chitando said in London.

“It’s a short-term problem and it’s going to work itself out as the economy grows.”

Companies are allowed to retain 30 per cent of foreign currency they earn, Chitando said, and can make an application to the Treasury if they need more.

Zimbabwe holds the second largest deposits of platinum and chrome after South Africa and has the potential to be a major lithium supplier.

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