The Reserve Bank of Zimbabwe (RBZ) has announced that small-scale gold miners, historically one of the country’s most dynamic foreign currency (forex) earners, will now receive 90% of their proceeds in US dollars and 10% in ZiG under changes announced in the 2026 Monetary Policy Statement.
Previously, miners were paid 100% in USD when selling gold to the state’s licensed buyer, Fidelity Printers and Refiners. This full retention acted as a powerful incentive, especially for small-scale producers navigating tight margins, rising input costs, and limited access to formal credit.
You May Like This
Under the new framework, the RBZ Governor Dr John Mushayavanhu confirmed that “Exporters will continue to receive 30% of their export earnings in ZiG,” while mandating a partial local currency component for small-scale miners to deepen ZiG usage and bolster exchange rate stability.
Gold remains Zimbabwe’s largest source of foreign exchange, earning a record US$4.8 billion in 2025, driven by high global prices. However, the sector has long grappled with governance and illicit trade challenges.
Analysts warn that reducing USD retention could unintentionally fuel gold smuggling across porous borders into Mozambique and South Africa, a problem Zimbabwe has battled for years. Reports from the 2010s and into the 2020s highlighted cross-border flows where miners moved gold informally to avoid low official prices, delay payments, or escape forex controls, undermining official export statistics and reducing state revenues.
Former Finance Minister Tendai Biti previously highlighted the scale of illicit financial flows in Zimbabwe’s mining sector. In 2023, he told Parliament that
“what we are losing in terms of illicit financial flows is actually more than what we are getting in terms of diaspora remittances US$1 billion, what we are getting in terms of foreign aid or overseas development assistance and what we are getting in terms of foreign investment which is around $200 million.”
He identified major culprits, including mining houses such as Zimplats and Unki, involved in under-invoicing, over-invoicing, and transfer pricing. Biti added that Zimbabwe was losing
“a billion USD from tobacco smuggling, a billion USD from gold smuggling on its own and we are now losing possibly $2 billion on lithium alone,”
He warned that the current extractive model leaves communities impoverished while resources are exploited. Analysts say his observations underline the ongoing risks of smuggling if incentives for small-scale miners are not carefully managed and enforcement remains weak.
With Fidelity’s official gold buying price sometimes deemed unattractive, many miners turned to artisanal markets and informal channels. Government insiders have previously acknowledged that “incentives matter,” and that tight controls without adequate incentives risk encouraging further smuggling.
While the adjustment aims to support the ZiG and stabilise the macroeconomy, critics say authorities must couple this policy with stronger border controls, competitive pricing at Fidelity, and enhanced monitoring to ensure miners do not resort to clandestine trading.
The central bank argues the change balances currency reform with gold sector sustainability, but its success will hinge on enforcement and miner confidence in both the domestic currency and official market mechanisms.
Leave a Reply