RBZ suspends 10% ZiG retention for small-scale gold miners after industry backlash

Gold processing at Fidelity Gold Refinery

HARARE – The Reserve Bank of Zimbabwe (RBZ) has suspended its controversial 10% local currency retention requirement for small-scale gold miners, reverting to 100% US dollar payments following strong resistance from the sector. The policy reversal comes less than a month after the central bank introduced a 90:10 payment framework on February 27, requiring artisanal miners to receive a portion of their gold proceeds in Zimbabwe Gold (ZiG).

Announcing the decision after its March 24 Monetary Policy Committee meeting, RBZ Governor John Mushayavanhu said the suspension was due to “implementation challenges,” particularly at Fidelity Gold Refinery, which handles gold purchases from miners. The central bank also acknowledged concerns raised by the Zimbabwe Miners Federation (ZMF), which had warned that the policy was ill-suited to the realities of Zimbabwe’s largely informal mining sector.

Industry pressure played a decisive role in the policy shift. ZMF President Henrietta Rushwaya had earlier written to President Emmerson Mnangagwa, cautioning that the requirement posed “material risks” to gold production.

“Forcing 10% of proceeds into ZiG reduces usable USD cash and can make marginal pits uneconomic,” the federation said in its submission.

The ZMF also warned that the policy could incentivise gold smuggling and reverse gains made in formalising deliveries to official channels.

Operational challenges further complicated implementation. Delayed payments and limited banking access among artisanal miners, many of whom operate outside the formal financial system, undermined the rollout of the new framework. Following engagements between the RBZ and mining representatives, authorities have now restored the previous 100% US dollar payment model while working on what the central bank described as “appropriate logistics,” including improving payment systems and financial inclusion.

Despite the uncertainty, gold output has remained resilient. Industry data shows February deliveries rose by 12.1% month-on-month, suggesting continued strength in the sector. Mining analysts say the decision is critical to maintaining production momentum.

“Foreign currency retention is a key incentive for small-scale miners,” said Harare-based mining economist Tafadzwa Moyo. “Any disruption to that model risks pushing gold into informal markets.”

Zimbabwe’s gold sector, driven largely by artisanal and small-scale miners, remains a cornerstone of the country’s foreign currency earnings, with authorities targeting annual production of 50 tonnes. The episode underscores the delicate balancing act facing policymakers as they pursue monetary reforms while accommodating the operational realities of a largely informal but economically vital sector.

RBZ gold policy Zimbabwe