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 of dollars 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.
The gold mining industry plays an important role in the country’s socio-economic development, accounting for more than 30 percent of the mining sector’s gross domestic product.
Its contribution to mineral exports has grown significantly from 27 percent in 2020 to 43 percent in 2024.
The sector also contributes 57 percent of total formal employment in the mining industry, with over 1,5 million people directly and indirectly involved in gold mining activities across the country.
To support the enforcement thrust, Fidelity Gold Refinery has implemented a raft of measures to strengthen traceability, accountability, and access to gold trading services across the country.
Key among these is the Elution Monitoring Programme, where Fidelity security officers monitor production at elution plants to ensure all gold output is delivered to Fidelity.
In addition, the Gold Mobilisation Technical Taskforce is working to enhance compliance within the Artisanal and Small-Scale Mining (ASM) sector.
Fidelity has also expanded its physical footprint with 20 gold buying centres established across all major mining provinces, including Bulawayo, Harare, Mutare and Gweru.
To further decentralise services, mobile gold buying units and agents are deployed to underserved regions.
“Fidelity is constructing one-stop gold service centres around Zimbabwe, making it easier for artisanal and small-scale gold miners to transact under one roof,” said Mr Magaramombe.
In line with international best practices, Fidelity has introduced a Gold Traceability System that tracks gold from the point of production through to the international market, enhancing transparency and ensuring compliance with the June 2023 legislation on responsible sourcing.
“This mine-to-market tracking framework reinforces the integrity of Zimbabwe’s gold supply chain,” he said.
To support the formalisation drive, Fidelity offers competitive pricing and guaranteed payments, with prices benchmarked against the London Bullion Market Association (LBMA).
“This strategy offers miners an internationally aligned value proposition for their gold, incentivising them to operate through official channels and further supporting efforts to eliminate illicit gold trading,” said Mr Magaramombe.
The establishment of the Gold Trade Enforcement Unit is being lauded as a turning point in Zimbabwe’s efforts to restore confidence and accountability in the gold sector, one of the country’s most strategic economic drivers.
“The establishment of the Gold Trade Enforcement Unit marks a positive inroad in upholding the integrity of the gold trading industry,” said Mr Magaramombe.
“Through the GTEU, Fidelity aims to establish a robust framework around national gold mobilisation, ensuring that every gramme contributes transparently and legitimately to Zimbabwe’s economic prosperity and security,” he added.
Commenting on the significance of the GTEU, Ms Elizabeth Maphosa, a mining sector analyst, described the unit’s creation as a “game-changer” in formalising the sector and plugging critical loopholes.
“The establishment of the Gold Trade Enforcement Unit brings institutional muscle to the fight against illegal gold trading,” Ms Maphosa said.
“For years, Zimbabwe has lost millions in revenue through smuggling and informal dealings. This unit, with clearly defined legal powers and co-ordination between Fidelity and law enforcement, sends a strong signal that the country is serious about protecting its mineral wealth. It will also build investor confidence in the sector’s governance.”
She added that the unit’s structure, involving officers appointed by both the refinery and the police, provides operational balance and credibility in execution, especially in the volatile Artisanal and Small-Scale Mining (ASM) sector.
