Online Reporter
Nqobile Bhebhe-Zimpapers Business Hub
IN a significant move to curb gold smuggling and enhance transparency, Fidelity Gold Refinery, the country’s sole gold buyer, has established a new Gold Trade Enforcement Unit (GTEU) with broad powers to safeguard the country’s gold value chain.
The GTEU is a dedicated arm established under recent amendments to the Gold Trade Act (Chapter 21:03) through Section 48 of the Finance Act (No. 2) of 2024.
As a result, Fidelity Gold Refinery will oversee the GTEU’s operations, following the insertion of Part A in the amended Act, which gives legal effect to the unit’s formation.
“In terms of the amendment, the Managing Director of the National Gold Refinery appoints the Head of the Unit. The GTEU comprises Fidelity staff and Zimbabwe Republic Police (ZRP) officers appointed by the Police Commissioner-General,” said Fidelity General Manager, Mr Peter Magaramombe.
The officers, now officially known as Gold Trade Enforcement Officers, are certified by the Minister of Finance and Economic Development and are each issued a certificate as proof of their authority.
The creation of the GTEU represents a bold institutional mechanism to curb illicit gold trading, smuggling, and leakages that have historically cost the country millions in potential revenue and foreign currency.
“The Gold Trade Enforcement Unit has been entrusted with a critical and multi-faceted mandate to safeguard Zimbabwe’s gold economy and ensure adherence to established regulations,” said Mr Magaramombe.
At the core of its operations, the GTEU will assist miners in preventing gold theft at mining sites and prevent unauthorised trading, ensuring gold is sold only to licensed dealers or authorised individuals.
Additionally, the unit will combat gold smuggling to protect strategic reserves and foreign currency earnings, reinforce transparency, and support national efforts to formalise gold trading in Zimbabwe.
The unit is empowered to conduct comprehensive checks at mining locations, including inspecting security systems, verifying prospecting activities, examining books and records, taking assay samples, and accessing digital storage devices for information in machine-readable formats.
“This comprehensive and proactive approach aims to ensure effective compliance with the Gold Trade Act, fostering a more secure, transparent and regulated gold trading environment that benefits all legitimate stakeholders,” said Mr Magaramombe.
The national gold target for 2025 is 40 tonnes.
