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ZIMBABWE’S gold mining sector has experienced remarkable growth in recent years, with production figures nearly doubling since 2015 and projected to surpass the 35-tonne target for 2024.
This strong growth trajectory is attributed to several strategic Government interventions, including gold mobilisation measures and policy reforms.
Key stakeholders across the industry have acknowledged the positive impact of the Government interventions in boosting gold deliveries and reducing leakages.
Speaking about the success of the initiatives on the sidelines of the fourth quarter gold mobilisation send-off, Mines and Mining Development Minister Winston Chitando highlighted the positive impact of such efforts.
“As an example, when we had the last gold mobilisation in October, the deliverance went up to 4,17 tonnes, and November saw 3,7 tonnes,” the minister said.
“We have had these programmes for quite a while now, and we believe they have helped significantly to get to the 32 tonnes we have now. We are confident we will surpass our 35-tonne target for the year.”
The mobilisation programmes have not only increased gold deliveries but have also helped in curbing mineral leakages by encouraging miners to operate within the formal system.
Looking ahead, Minister Chitando emphasised plans to intensify these efforts in 2025 to further plug leakages and maximise gold production.
Mines and Mining Development Deputy Minister Dr Polite Kambamura weighed in, saying the ministry was looking at closing the year with around 37 tonnes of gold.
“We already have 32 tonnes delivered in the 11 months to November, so we expect at least 3 tonnes from the miners in December and 2 tonnes from the platinum group minerals (PGM) miners to close the year above our target.
“So, effectively we are now looking at 37 tonnes at the close of December,” he said.
Another policy intervention driving production and deliveries was the repeal in May this year of the 15 percent value-added tax (VAT) on gold delivered to Fidelity Gold Refiners.
The VAT, introduced earlier in the year, had disrupted cash flows for small-scale miners, pushing many to informal markets to avoid the tax burden. Recognising the negative impact of the tax, the Government swiftly repealed the law through Statutory Instrument 105 of 2024.
The legislative reversal has had an immediate and positive effect on the sector.
Economist Mr Tinevimbo Shava commended the move, saying: “The reversal of the 15 percent VAT on gold deliveries was a significant development that will undoubtedly continue to encourage more small-scale miners to bring their gold to the formal market.
“This policy shift has eased financial burdens, thereby boosting miners’ operational capacity.”
Chamber of Mines of Zimbabwe president Isaac Kwesu in October noted that the removal of VAT had restored trust between the Government and gold producers.
“By reducing operational costs, the repeal has made formal gold deliveries more attractive to miners, contributing to the overall stability and growth of the industry,” Mr Kwesu said.
Mr Thomas Gono, president of the Gold Producers Association, lauded the success of the gold mobilisation programmes, emphasising their role in fostering transparency and accountability within the sector.
“The mobilisation programmes have not only increased gold output but have also strengthened relationships between miners and the Government,” he stated.
“These interventions demonstrate a commitment to ensuring that the country’s mineral wealth is effectively harnessed for national development.”
Mr Gono also pointed out that the collaborative approach adopted by the Government, which involves engaging stakeholders in the industry, has been instrumental in aligning policy objectives with on-the-ground realities.
This has created an enabling environment for sustained growth and investment in gold production.
As Zimbabwe continues to position the yellow metal as a cornerstone of its economic growth, including efforts to anchor Zimbabwe Gold (ZiG)’s stability, the Government’s efforts to formalise the sector and reduce leakages could yield even better results.
The focus on gold mobilisation and supportive policy frameworks underscores a broader strategy to maximise mineral wealth for national benefit.
With the country having already recorded 32 tonnes of gold deliveries, the outlook for the sector is positive. Industry experts and Government officials alike expect the country not only to meet but also exceed the annual target of 35 tonnes.
“Gold is one of the anchors of our currency. We must maximise deliverance and ensure that our efforts are redoubled in the coming years,” said Minister Chitando.
Wenslus Murape
