Zimbabwe Banking on Gold to Drive Economic Growth and Foreign Currency Inflows

Zimbabwe's gold sector is on track to significantly boost the country's economy, with output projected to reach 40 tonnes this year. This growth is attributed to substantial investments, a stable operating environment, and increased mining capacity.

According to Fidelity Gold Refinery, the country's sole buyer of gold, production surged to over 36 tonnes in 2024, up from 30 tonnes in 2023. The sector's strong performance is sparking optimism for sustained economic gains.

Artisanal miners, alongside new ventures by large-scale mining companies, are expected to play a key role in driving production.

"The 40-tonne target is achievable, provided the government continues to support the industry through machinery, payment incentives, and favourable policies," said Wellington Takavarasha, CEO of the Zimbabwe Miners Federation. "Expansionary projects and consistent backing will allow the sector to boost output and add value, with small-scale miners remaining pivotal to deliveries."

The government is also taking steps to address challenges in the gold mining sector.

"We're committed to mobilizing resources for small-scale miners while fostering a conducive environment for large-scale operations," stated Winston Chitando, the Minister of Mines and Mining Development. "Our goal is to build on current gains by introducing measures to enhance output and ensure sustainable growth."

Gold remains Zimbabwe's leading foreign currency earner, and the projected increase in production is expected to bolster foreign currency inflows. The precious metal's dominance in the export market highlights its critical role in the country's economic development strategy.

With the government and private sector aligned on the need for expansion and sustainable practices, Zimbabwe's gold mining industry is set to remain a cornerstone of economic growth in the years ahead.