Online Reporter
Herald Reporter
TO curb rampant gold smuggling and encourage the formalisation of over one million small-scale miners, the Government introduced a 5 percent incentive to increase the country’s gold reserves and ultimately strengthen the local currency, a political analyst has said.
Writing on microblogging platform X, respected political analyst Mr Dereck Goto said social media noise surrounding the letter signed by the Permanent Secretary for Finance, Economic Development and Investment Promotion, Mr George Guvamatanga, dated September 4, 2024, is yet another example of misplaced outrage rooted in misinformation and ignorance of national policy.
“The letter in question pertains to a legally sound and economically strategic arrangement whereby the Government of Zimbabwe, through the Ministry of Finance, honours a 5 percent gold delivery incentive to a contracted company – Gaingrid Investments (Pvt) Ltd – tasked with purchasing gold from Zimbabwean miners for delivery to Fidelity Gold Refinery. This is clear.
“This incentive is not a scandal. It is official Government policy, designed to curb rampant gold smuggling, encourage the formalisation of over one million small-scale and artisanal miners, and ultimately strengthen Zimbabwe’s gold reserves – a critical pillar for maintaining a sustainable local currency backed by real assets,” he said.
He added that the Government recently took a significant step to make this incentive more inclusive by lowering the qualifying threshold from 20kg to just 0,5kg.
“This means even the smallest miners can now participate in the formal economy and benefit from the 5 percent incentive – a move that further incentivises legal deliveries over illegal channels”.
An official from the Ministry of Finance said Mr Guvamatanga as the Secretary is mandated to execute such duties contrary to misinformation peddled by naysayers on social media platforms.
“Whether it was George Guvamatanga, you, or I serving as Permanent Secretary, any competent official would have signed the same letter to operationalise this policy.
“To vilify a public servant for fulfilling legal and policy obligations is not only misinformed, but entirely unjustified”.
