Zimbabwe’s central bank has temporarily halted the rollout of a policy that would have required small-scale gold miners to retain 90 percent of their export earnings in foreign currency, following operational difficulties that risked disrupting a major source of hard currency inflows.
Under the previous arrangement, small-scale miners received full payment in US dollars for their gold deliveries. In contrast, large-scale producers are mandated to surrender 30 percent of their export proceeds to the Reserve Bank of Zimbabwe (RBZ) in exchange for local currency at the official rate.
The decision was made after the latest Monetary Policy Committee (MPC) meeting, as small-scale miners continue to account for the bulk of gold deliveries. Their contribution has been key to rising export revenues, improved currency stability, and broader economic growth.
RBZ Governor Dr. John Mushayavanhu noted that while the MPC supported the introduction of the 90 percent retention threshold, its implementation faced logistical challenges at Fidelity Gold Refinery. As a result, the bank opted to pause the policy until the necessary systems are in place to ensure smooth execution.
In the interim, the RBZ had begun paying 10 percent of small-scale miners’ earnings in local currency. This move came amid concerns that some large-scale producers might be channeling gold through smaller operators to benefit from lower royalties and more favorable incentives.
Currently, small-scale miners enjoy a reduced royalty rate of between 1 and 2 percent on gold. This preferential rate is intended to encourage formal sales channels and ease the tax burden on smaller producers.
