Online Reporter
Martin Kadzere
Zimbabwe has surpassed its 2025 national gold production target by 16,7 percent, with deliveries to Fidelity Gold Refinery, the country’s sole buyer of gold and silver, reaching 46,7 tonnes.
The record-breaking performance was driven by small-scale miners, who accounted for 75 percent of the total output. As of December 31, the country surpassed the Government’s 40-tonne target, ending the year with a powerful “December rush” of nearly five tonnes.
The record-breaking output has reinforced gold’s status as Zimbabwe’s premier export and its largest source of foreign currency.
With half royalty payments going to the national gold reserves, this surge in production has significantly bolstered national gold reserves, allowing the central bank to build a substantial “war chest” of hard assets.
The gold reserves, alongside other precious minerals and foreign currency holdings, provide the critical backing needed for the ZiG local currency.
Some economic analysts say this effectively boosts both public and investor confidence in the domestic currency.
Since its launch in April 2024, ZiG has achieved something previous local currencies could not, as it has largely stayed remarkably steady.
In 2025, it lost 0,7 percent of its value against the US dollar, a massive change from the wild rate swings of the past.
The ZiG’s stability is largely credited to its backing by hard assets, ensuring its value is anchored by physical reserves. By the end of 2025, the currency was supported by US$1,1 billion, consisting of gold, some precious minerals and significant foreign currency reserves held by the central bank.
Furthermore, the record production levels have injected billions of dollars in foreign currency into the economy through exports, providing a vital boost to the country’s current account.
Beyond the mining sector, the trickle-down effects have been enormous; the gold proceeds are finding their way into other key industries, including real estate, hospitality and the fuel sector.
The cross-sector investment is driving broader economic growth and creating jobs across the country.
“The 2025 performance proves that when the policy environment aligns with global price trends, Zimbabwe’s mineral wealth can drive the entire economy,” economist Mr Tobias Musara said.
“By offering competitive US dollar payments and recognising artisanal miners, the Government has successfully redirected billions from the ‘grey market’ into the formal system.”
Furthermore, market experts point out that the “multiplier effect” of the gold revenue is now visible.
Analysts have noted that because small-scale miners largely invest their earnings locally, record gold earnings have acted as a direct stimulus for the domestic construction and service industries.
