Online Reporter
Tapiwanashe Mangwiro-Senior Business Reporter
PRESIDENT Mnangagwa yesterday inspected the Reserve Bank of Zimbabwe’s vaults in a visit that authenticated the physical presence of the bank’s growing stock of bullion underpinning Zimbabwe’s new currency, Zimbabwe Gold (ZiG).
The President was shown 3 400 kilogrammes of gold accumulated entirely from royalties paid by both large and small-scale miners since the RBZ began its reserve-building programme two years ago.
The visit followed an invitation from the central bank.
On April 5, 2024, Zimbabwe’s gold stock stood at just 1 500 kg.
The central bank started building the gold reserves following an instruction by President Mnangagwa, with the ultimate objective being to introduce a more stable gold-backed currency that commands market credibility.
Prior to this, Zimbabwe had battled long periods of inflation and macroeconomic instability, which made planning difficult and discouraged investment.
Since introducing the ZiG last year, Zimbabwe has experienced, arguably, its longest stretch of economic stability, which elicited positive comments from an International Monetary Fund staff mission that was in the country a few days ago for its regular economic evaluation programmes.
Speaking after inspecting the stockpile of the bullion, President Mnangagwa commended efforts by the RBZ to build gold reserves to back the local currency.
“Two years ago, we had no gold or cash reserves and it felt wrong. I then instructed the central bank to build reserves in order for us to have a gold-backed currency.
“There are some out there who have squandered their reserves and are now backing their currencies with theory, but we need hard physical gold to sustain our local currency,” he said.
President Mnangagwa said a gold-backed ZiG would earn well-deserved respect and help stabilise the economy through greater predictability and confidence.
Writing on his X handle later yesterday, the President said: “This morning, I visited the RBZ vaults to inspect our gold reserves accumulated over the past two years following my directive to build a gold backed foundation for our currency. I am pleased to note that Zimbabwe has now surpassed the 3-tonne benchmark, placing us sixth in Africa in gold holdings.
President Mnangagwa converses with Reserve Bank of Zimbabwe Governor John Mushayavanhu during an inspection of gold vaults at the central bank yesterday.
“In an increasingly uncertain global environment, gold remains a secure and strategic asset. As a significant gold producer, Zimbabwe is well-positioned to safeguard our economic stability and sovereignty”.
RBZ Governor Dr John Mushayavanhu said they heeded the President’s instruction and were gradually building up gold reserves.
“We heeded the instruction of the President, and miners have responded positively, especially the artisanal and small-scale sector, which is now our biggest producer of gold,” he said.
As of June 13, 2025, Dr Mushayavanhu reported, the bank held foreign currency reserves equivalent to US$701 million or ZiG 18,9 billion, fully covering the ZiG 17 billion in circulation.
He revealed that the vaults contained 326 standard gold bars, each weighing 10kg, with a minimum purity of 99,5 percent.
“The total net weight of these bars is about 3 300 kilogrammes,” he said. This excludes an additional 120kg still held at the Fidelity Gold Refinery pending certification.
“This physical stock is fundamental to maintaining the credibility and stability of the ZiG, as we have seen reflected in recent market performance,” Dr Mushayavanhu said.
The physical gold reserve has grown by 126 percent over the past 14 months and appreciated in value.
In April 2024, 1 500kg of gold were valued at US$148 million, translating to US$98 881 per kg.
Today, that same weight is worth about US$163 million, a 10 percent gain driven solely by rising international gold prices.
“By sitting in the vault for over 12 months, the gold has generated a return on investment that is worthwhile,” Dr Mushayavanhu said.
President Mnangagwa also took the opportunity to commend small-scale miners for embracing formalisation.
“We decided to decriminalise artisanal mining (makorokoza) and integrate these operators into the system. Now we are reaping the rewards; they are outperforming some primary producers. I am not saying the larger mines are not contributing; they too are paying more through other taxes, but the inclusivity of our approach has borne fruit.”
The RBZ’s drive to accumulate gold began with the introduction of the ZiG, a fully structured, market-determined currency that replaced the RTGS dollar, which had lost three-quarters of its value by April 2024.
Economist Tinevimbo Shava said central banks hold gold primarily as insurance against instability and currency swings.
“Unlike paper money, gold retains intrinsic value and is universally recognised, making it a trusted store of wealth during crises. It also diversifies foreign-exchange reserves, balancing exposure when major currencies like the US dollar fluctuate.”
Mr Shava said in countries with fragile histories of inflation, gold restores confidence in the financial system, especially when it underpins a local currency like the ZiG.
“Gold enhances a central bank’s credibility, supports monetary policy and emergency liquidity, and carries no counterparty risk. With its finite supply and global liquidity, gold remains a strategic reserve asset and a cornerstone of economic resilience and trust,” he said.
