D. Bhebhe - Faculty of Natural and Agricultural Sciences - University ...

The reason for staying in the sector ca be attributed largely to a lack of better paying
alternative. Panners may also be staying in the sector due to the flexible hours of work, the
relative independence they enjoy, the low costs of living, and the chance to make a big gold
find.
2.20 Economic Analysis of gold panning
An economic analysis tried to capture all the major costs and benefits of an activity. This
study used the province of Matebeleland South and Gwanda district in particular as the area of
analysis or accounting stance. The main steps to consider in an economic analysis are
Description of the benefits and costs.
Quantification of a many benefits and costs as possible.
Comparison of benefits and costs.
Discussion of distribution of benefits and costs
2.21 Economic Benefits with specific reference to gold income
The main economic benefit in this sector is gross income through the sale of gold using the
official Reserve bank price, which is equivalent to the world price less minor commissions.
The fact that individual gold panners don’t receive the full official price is irrelevant. The total
value of gold is spilt between the panners who receive a price which is below the official price
is irrelevant. The main concern is with the value of the gold on world prices. The total value
of gold is spilt between the panners who receive a price, which is below the official rate, and
the dealers or middlemen who sell the gold at the official rate (to either the Reserve bank
agents or external buyers) and keep the difference. The total income generated is still the
volume of gold ore multiplied by the world price. The income will still largely flow into
Zimbabwe.
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