ZIMBABWE’S gold producers have warned that delays in receiving the ZiG equivalent of export surrender proceeds are triggering a worsening cash-flow crisis, threatening mine viability, delaying expansion projects and undermining the country’s ability to benefit from record-soaring bullion prices.
The warning comes after Zimbabwe set a 2026 gold delivery target of 50 tonnes, up from the record 46,7 tonnes achieved last year, with small-scale miners accounting for 75% of total deliveries.
Industry players say payment bottlenecks, compounded by a widening gap between the official and parallel exchange rates, are draining working capital and constraining investment, despite gold prices trading near historic highs.
Speaking at the ongoing Chamber of Mines of Zimbabwe annual conference in Victoria Falls, Chamber of Mines gold producers committee chairperson Qubeka Nkomo said the sector’s long-term prospects remained strong, but persistent liquidity constraints were threatening growth.
“Some gold producers have been reporting delays in the payment of the ZiG equivalent of the surrender portion of their export proceeds,” he said.
“These delays are causing viability and operational challenges as producers are forced to run their businesses on discounted cash flows.”
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He said the problem was being exacerbated by distortions in the foreign exchange market.
“Imagine the scenario that we are currently in where the interbank rate stands at 27, and the market rate is at 33 to the US dollar,” Nkomo said, highlighting the erosion of value faced by exporters.
The cause behind the exchange rate disparities and ZiG delay is the Reserve Bank of Zimbabwe’s stance to tighten local currency liquidity to control its value.
Gold producers note that apart from liquidity shortages, power supply disruptions, and limited access to foreign currency are preventing the sector from fully capitalising on the global commodities pricing boom.
Gold is Zimbabwe’s single largest mineral export and, as such, a critical source of foreign currency.
“Most gold producers that are expanding their operations continue to report that they are facing foreign currency shortages to meet their operational requirements and spending on capital equipment,” Nkomo said.
“There is a need to prioritise such allocations. The situation is delaying the execution of plant expansion projects.”
Initially, the RBZ introduced the 90% USD and 10% ZiG retention ratio for small-scale miners, deviating from the standard 70%/30% ratio.
However, in March, following deliberations by the Monetary Policy Committee, authorities agreed to pause implementation until appropriate logistics and financial inclusion programs are fully established.
Since small-scale miners now contribute 75% of gold deliveries, these ZiG delays threaten the entire industry.
Nkomo cautioned that these operational challenges continue to weigh heavily on the sector.
He said unreliable electricity supplies remained a major production risk, particularly for mines that are not connected to dedicated power lines
“Power supply to gold projects remains fragile, with some projects subjected to load-shedding. These unscheduled outages result in production stoppages and output losses,” Nkomo said.
He also cited high operating costs, capital shortages, and persistent foreign currency constraints as key downside risks facing the industry.
Policymakers are also attending the conference, where the mining industry will be looking to them to address some of their concerns.