Online Reporter
Oliver Kazunga
Senior Reporter
ZIMBABWE’S gold output rose 10,5 percent in the first quarter of the year, strengthening foreign currency inflows and boosting reserves backing the Zimbabwe Gold (ZiG) currency.
Data from Fidelity Gold Refinery (FGR), the country’s sole authorised gold buyer, shows that 9,4 tonnes of gold were delivered between January and March this year — up from 8,5 tonnes recorded during the same period last year.
In an interview, Zimbabwe Miners Federation secretary for women affairs Ms Jessica Mazivazvose attributed the improved output of the yellow metal to continued interventions by the Government to support artisanal and small-scale miners’ operations.
“The increased gold output in the first quarter of 2026 is largely attributed to the interventions by the Government and the favourable gold prices in the international market.
“Resultantly, this has motivated us (artisanal and small-scale miners) to produce more.
“The Government has also been conducting gold mobilisation workshops that have seen more gold being channelled to the formal market, thereby maximising earnings for the artisanal and small-scale miners as FGR is offering favourable prices,” she said.
Under the gold mobilisation initiative, the Government has been conducting gold mobilisation workshops across the country, educating artisanal and small-scale miners on the importance of formalising their trade and reducing the influence of unregistered gold buyers.
Through the gold mobilisation programme, the Government was not only ensuring compliance but also setting the stage for sustainable growth in the mining industry.
As part of broader efforts to boost gold output, Government policy has played a central role, particularly the decision to maintain favourable royalty regimes for small-scale miners.
And combined with elevated global gold prices, this has encouraged thousands of miners to formalise their deliveries.
Gold remains Zimbabwe’s largest foreign currency earner, playing a critical role in stabilising the economy and supporting the local currency.
Last year, the country’s gold exports generated a record high of US$4,6 billion, representing nearly half of Zimbabwe’s total export earnings.
The surge in bullion revenue supplied essential liquidity to the economy, strengthening confidence in both foreign currency availability and the gold-backed ZiG currency, while helping to contain inflation.
And beyond bolstering export earnings, the gold boom enabled the Reserve Bank of Zimbabwe to continue building strategic reserves that underpin the local currency.
As at the end of last month, gold reserves backing the ZiG stood at US$1,3 billion.
The Zimbabwe National Chamber of Commerce chief executive officer, Mr Chris Mugaga, said increased gold deliveries to FGR were a welcome development, which would strengthen national reserves, giving authorities greater capacity to stabilise the currency during periods of volatility.
“What’s more important is for us to appreciate that the value of a currency certainly is not just necessarily a function of the reserves themselves.
“The reserves are like a buffer where you say the Government should be able to intervene through the Central Bank in the market in cases of volatility or any challenges so the reserves are more of a buffer than a primary determinant of value of the exchange rate,” he said.
“So it is certainly good news that we have seen a positive northwards trajectory in terms of gold deliveries.
“Just like any other commodity, the gold prices will fluctuate time and again so the ZiG value is not just primarily determined by the gold stocks held, it’s a function of the demand and supply for that ZiG itself.”
Economic commentator Mr George Nhepera said improved gold output would certainly boost the reserves being used to back the ZiG.
“Remember we introduced a ‘structured currency’ directly linked to our gold production and price of gold after realising the weakness of previous local currencies, which were not ‘backed’ by anything outside of market confidence and integrity.
“Now the new ZiG currency has both market confidence and gold reserves backup.
“Nevertheless, we should still allow the local currency to fully find its ‘strong footing’ and exist for a longer period, under a multi-currency arrangement, in my view, for a period well beyond 2030,” he said.
Last year, Zimbabwe posted a record annual gold output of 46,7 tonnes – a 28 percent rise from the previous year.
The strong performance was largely underpinned by the artisanal and small-scale sector, which delivered 34,9 tonnes, or around 75 percent of the national total.
Stakeholders in the gold sector this year target 50 tonnes of the yellow metal, while the broader goal is for the country to reach over 100 tonnes in annual deliveries.
