Online Reporter
Oliver Kazunga-Senior Reporter
ANALYSTS have hailed the Government’s decision to reserve small-scale gold mining for locals as a masterstroke set to secure Zimbabwe’s mineral wealth, curb leakages and transform the country’s mining sector.
Mines and Mining Development Minister Dr Polite Kambamura, on May 22, 2026, announced that foreign individuals and foreign-controlled entities would no longer be permitted to acquire, hold or control small-scale gold mining titles in Zimbabwe.
The move places one of the country’s most strategic sectors firmly into the hands of local citizens and Zimbabwean-owned companies, while advancing the Government’s drive towards broad-based economic empowerment and sustainable exploitation of mineral resources.
Under the new policy, small and medium-scale gold mining operations are defined as those producing up to 20 kilogrammes of gold per month or involving capital investment of up to US$15 million.
The latest intervention comes as the Government intensifies efforts to maximise mineral revenues, formalise artisanal mining and accelerate growth of the mining sector into a US$12 billion industry anchored on transparency, beneficiation and citizen participation.
Announcing the new measures, Dr Kambamura said all existing operators in the small-scale category would be required to regularise and re-register their operations before January 1, 2027.
Authorities will undertake stringent verification of citizenship, beneficial ownership, financing structures and compliance with environmental and taxation laws.
The Government has also outlawed proxy ownership arrangements and fronting structures used to disguise foreign control of mining operations, a move authorities believe will help eliminate illegal syndicates and restore transparency and accountability in the sector.
Political commentator Mr Dereck Goto said the Government has correctly distinguished between large-scale, capital-intensive mining, which still requires significant foreign investment, and the small-scale sector, which could serve as a platform for indigenous capital formation and entrepreneurship.
“What is particularly important is the decision to eliminate proxy ownership and fronting arrangements,” he said.
“There is a public finance argument that is often overlooked. Small-scale mining frequently operates with hidden subsidies in the form of environmental costs, informal labour and tax leakages.”
“When foreign interests control this sector through proxy structures, they capture not only the gold but also economic benefits that should accrue to the communities and citizens who bear those costs. This is not economic nationalism for its own sake. It is sound resource governance.”
“Critics who argue that the policy will scare away investment miss an important point. Serious investors are attracted by policy clarity and regulatory certainty. Government has clearly stated where indigenous participation is expected and where larger-scale investment opportunities remain available,” he said, adding that in a broader continental context, the Mbeki Panel on Illicit Financial Flows identified artisanal and small-scale gold mining as one of the major channels through which wealth leaves Africa illegally.
“By tightening ownership structures, improving transparency and ending fronting arrangements, Zimbabwe is not closing the door to investment. It is closing the door to value leakage,” said Mr Goto.
“Ultimately, the success of a mineral-rich nation is not measured by how much gold it extracts, but by how much national wealth it retains. This policy is a deliberate step towards achieving that objective.”
The Zimbabwe Miners Federation (ZMF) president, Ms Henrietta Rushwaya, whose organisation represents artisanal and small-scale miners across the country, welcomed the policy shift.
“This decision responds directly to a long-standing call by ZMF, which has consistently advocated for foreign investors not to occupy small-scale mining claims that are intended to benefit Zimbabwean citizens.
“By requiring foreign investors holding 50 hectares or less to demonstrate their viability by producing at least 20kg per month, the Government has drawn a clear, fair and enforceable line,” she said.
In recent years, ZMF has been lobbying the Government to reserve claims of 50 hectares and below for indigenous Zimbabweans, arguing that the scramble for mining titles by cash-rich foreign investors had reduced opportunities for locals.
“The policy safeguards the artisanal and small-scale mining sector for Zimbabweans — and it addresses the long-standing concern of foreign occupation of claims reserved for citizens and ensures that only investors with genuine large-scale mining capacity remain in the sector,” said Ms Rushwaya.
“I commend this policy as a significant victory for our members and a commendable example of responsible and equitable resource governance.”
The sector officially delivered 46,7 tonnes of gold to Fidelity Gold Refinery last year — the highest output in Zimbabwe’s history, surpassing the previous record of 36,5 tonnes achieved in 2023.
Artisanal and small-scale miners accounted for 34,87 tonnes of the total deliveries, underlining the sector’s growing contribution to the economy and the importance of continued Government support.
Economic commentator Mr Trust Chikohora described the latest policy announcement as a step in the right direction.
“The small-scale miners have proven that they can do it; in fact, they are producing most of the gold now and their tonnage keeps going up, so they need to be promoted and we do not need corporations getting involved in small-scale mining.”
