Fidelity Gold launches elite enforcement unit

Fidelity Gold Refinery (Private) Limited has launched a dedicated Gold Trade Enforcement Unit (GTEU), a landmark development aimed at clamping down on illegal gold trading, smuggling, and value chain leakages that have cost Zimbabwe millions in potential revenue.

The unit was officially established under the amended Gold Trade Act (Chapter 21:03), following changes introduced through Section 48 of the Finance Act (No. 2) of 2024. The amendments include the insertion of Part A into the Act, legally formalising the GTEU's creation.

The GTEU will operate under the direct oversight of Fidelity Gold Refinery, Zimbabwe's designated National Gold Refinery, which now holds the legal mandate to coordinate and manage its operations.

"In terms of the amendment, the Managing Director of the National Gold Refinery appoints the Head of the Unit," said Fidelity General Manager, Mr Peter Magaramombe. "The GTEU comprises Fidelity staff and Zimbabwe Republic Police (ZRP) officers appointed by the Police Commissioner-General."

These officers, now officially designated as Gold Trade Enforcement Officers, are certified by the Minister of Finance and Economic Development and issued certificates to validate their authority.

Mr Magaramombe said the establishment of the GTEU is a bold institutional measure aimed at safeguarding Zimbabwe's gold economy and enhancing compliance with national laws.

"The Gold Trade Enforcement Unit has been entrusted with a critical and multi-faceted mandate to ensure adherence to established regulations and support efforts to formalise gold trading," he said.

The GTEU will be tasked with assisting miners in securing mining sites against gold theft and ensuring that gold is sold only to licensed or authorised entities. It will also work to prevent unauthorised trading and smuggling of the precious metal, thereby protecting Zimbabwe's strategic reserves and foreign currency earnings.

The unit is empowered to carry out on-site inspections, verify prospecting activities, examine records, take assay samples, inspect security systems, and access digital records stored in machine-readable formats.

"This comprehensive and proactive approach aims to ensure effective compliance with the Gold Trade Act, fostering a more secure, transparent and regulated gold trading environment that benefits all legitimate stakeholders," Magaramombe said.

Zimbabwe's national gold production target for 2025 is 40 tonnes. The gold mining industry has become a central pillar of the economy, contributing over 30 percent of the mining sector's GDP. Its share of mineral exports grew from 27 percent in 2020 to 43 percent in 2024.

The sector also supports approximately 1.5 million people through direct and indirect employment, accounting for 57 percent of total formal mining industry jobs.