Zimbabwe Gold Miners Warn Higher Royalty Will Fuel Smuggling

A Zimbabwe one hundred trillion dollar note and small gold bars. (Image by Paul, Flickr.)

Zimbabwe’s small-scale gold producers have warned that government plans to double mining royalties will stall investment and drive more of the country’s bullion into illicit channels.

In a letter to Finance Minister Mthuli Ncube dated December 2, the Zimbabwe Miners Federation (ZMF) — representing more than 450,000 small-scale miners who account for about 65% of national output — cautioned that the new levy would undermine formal trade.

Royalty Hike Details

• The government announced last month that from January 1, 2026, gold miners will face a 10% royalty on bullion priced above $2,501 per ounce.

• Authorities say the measure is designed to capture more revenue from gold’s record-breaking rally this year.

Industry Concerns

The ZMF argues that the higher royalty will strip miners of incentives to sell through official channels, eroding fiscal revenues.

Market Context

• Zimbabwe’s gold export revenues surged 88% to $3.76 billion in the first 10 months of 2025, buoyed by record production and bullion prices near an all-time high above $4,200 an ounce.

• Gold remains the country’s single largest source of foreign currency, making policy shifts in the sector highly sensitive.