Zimbabwe gold reserves rises 12%

The Reserve Bank of Zimbabwe (RBZ) has announced that its gold reserves have grown by 12% to over 3.1 tonnes since March this year, bolstering the country's efforts to build a more stable foreign exchange buffer and restore public trust in its newly launched commodity-backed currency, the Zimbabwe Gold (ZIG).

Speaking at the Chamber of Mines of Zimbabwe's annual conference held recently in Victoria Falls, RBZ deputy governor Innocent Matshe said the central bank is on track to reach six months' worth of import cover within the next two to three years, supported by increased mineral output and in-kind royalty payments.

"As I speak to you, we have more than 3.1 tonnes of gold accumulated in only one year," Matshe told industry leaders and delegates. "But it's not only about the accumulation of reserves. It's also about making those reserves work. We need to sweat the reserves."

As of March, Zimbabwe had a total of US$629 million in foreign currency reserves. These included US$296 million held in nostro accounts, primarily from export retention proceeds, US$274 million in gold, and ZIG3.8 billion. At that time, gold reserves stood at 2.77 tonnes, according to the RBZ's April 5 snapshot report on recent monetary and financial developments. The jump to over 3.1 tonnes by May reflects a marked increase in royalty payments being made in physical gold-a key pillar of the government's strategy to anchor the domestic currency to tangible commodities and address long-standing concerns over policy credibility.

Zimbabwe has also joined the World Bank's Reserves Advisory and Management Programme (RAMP), which aims to enhance central banks' capacity to manage reserves in a professional and transparent manner. Matshe said this move was a step towards better financial governance and a sign of the central bank's commitment to reforms.

The mining sector remains the backbone of Zimbabwe's economy. In 2024, it generated US$5.9 billion of the country's US$8.3 billion total export earnings. In just the first quarter of 2025, the sector had already brought in US$1.4 billion, driven largely by gold, platinum group metals, lithium, and diamonds. Matshe described the mining sector as "key to the economy," adding that its performance would remain central to the success of broader macroeconomic reforms.

Turning to policy, Matshe addressed the controversial 30% foreign currency surrender requirement for exporters. Many mining companies have argued that this regulation reduces their ability to reinvest and modernise operations. While Matshe said the surrender rule would remain in place for now, he confirmed that it would be reviewed periodically to align with the increased use of the ZIG and to support the gradual de-dollarisation of the economy.

"We want de-dollarisation to be a process. We all need that as a country. We need it so that it doesn't disrupt business or the processes of producers," Matshe said. He acknowledged the concerns of industry players and stressed the importance of consistent dialogue, transparency, and accountability in the implementation of monetary policy.

"We are not blind to the concerns raised by industry players and the wider public. We know that confidence must be earned and sustained, not demanded," he said.

The central bank is now focused on ensuring that Zimbabwe's reserves not only grow but are also used productively to support long-term economic stability. With firm backing from the mining sector and more structured reserve management, officials are optimistic that the country can achieve the resilience needed to sustain its economic recovery.