Chitando bemoans gold smuggling

Mines and Mining Development Minister Winston Chitando has raised alarm over the persistent threat of gold smuggling and other illicit activities, warning that Zimbabwe could be losing up to 40% of its potential gold revenue, even as the sector posts encouraging output figures.

Speaking during the 2025 First Quarter Gold Mobilisation Workshop in Harare on Wednesday, Chitando said that the continued leakage of gold through illegal channels remains a significant challenge for the sector.

“It is important to acknowledge the significant challenges that continue to face our gold mining sector. Foremost among these are illicit activities and the ongoing issue of gold smuggling," Chitando said. “Due to its inherent nature as a high value and low volume commodity, gold is particularly susceptible to leakages to various international markets."

Gold prices have surged by 40% in 2025, reaching US$3,338.19 per ounce, according to United Kingdom-based market tracker BullionVault Ltd. However, gold smuggling could be severely undermining these gains. A 2020 investigation by the International Crisis Group estimated that Zimbabwe loses US$1.5 billion annually to gold smuggling-roughly 22.4 tonnes a year or 1.87 tonnes per month.

At current prices, that monthly smuggled volume could translate into a loss of approximately US$660 million in the first quarter of the year alone.

The Home Affairs ministry has previously pegged monthly losses due to smuggling at a minimum of US$100 million. The top destinations for Zimbabwe's smuggled gold remain the United Arab Emirates and South Africa.

Despite these challenges, the gold sector showed promising performance in the first quarter of 2025. Chitando reported a total gold delivery of 8.5 tonnes, surpassing the quarterly target of seven tonnes.

“This demonstrates a solid start to the year and provides a strong foundation upon which to build," he said. “In January, we recorded a total purchase of 3.13 tonnes of gold. This momentum continued into February and March with 2.56 tonnes and 2.79 tonnes, respectively."

The Zimbabwe National Statistics Agency (ZimStat) reported that gold exports earned the country US$755.24 million in the first quarter of 2025-almost double the US$385.13 million generated during the same period in 2024.

Small-scale miners continue to dominate gold production, contributing an average of 68% of total monthly deliveries in the first quarter. In January, February, and March, their respective outputs were 2.27 tonnes, 1.64 tonnes, and 1.86 tonnes.

“A closer examination of the production analysis reveals a familiar pattern that highlights the critical role played by our small-scale producers," Chitando said.

He reiterated the ministry's commitment to supporting artisanal and small-scale gold miners through formalisation initiatives, training, and access to transparent and fair markets.

“To effectively curb these detrimental activities, strong collaboration and shared responsibility amongst all stakeholders is paramount," Chitando added, calling for tighter coordination between government, law enforcement, and industry players.

The remarks come as Zimbabwe continues to pursue ambitious gold output targets while grappling with enforcement gaps that have long plagued the mineral sector.