The Zimbabwe Miners Federation (ZMF) says Finance Minister Mthuli Ncube’s plan to double gold royalties will scare off new investment and promote gold smuggling.
ZMF represents small-scale miners, who produce over 75% of the country’s gold. In a letter to Ncube, the group warns: “New investment in exploration and mine development will stall. We project a dramatic increase in smuggling as miners seek better returns in neighboring countries with lower fiscal impositions.”
In the 2026 budget, Ncube wants to raise gold royalties — the fee miners pay to the government — from 5% to 10% for gold selling above US$2,501 an ounce. Previously, only large scale miners paid the royalties. Now, of the budget passes, even small scale miners would pay 10% of what they earn to government. Ncube says the measure is necessary for government to benefit more from record gold prices.
But ZMF says higher royalties will only force them to push gold via illegal channels, denying government the revenue it hopes for. “As production shifts to illicit channels, official gold exports — a critical source of foreign currency — will decline, harming the country’s balance of payments and exchange rate stability.”
Gold earnings have been strong this year, rising 88% to US$3.76 billion in the first 10 months, helped by record output and prices near all-time highs above US$4,200 an ounce.
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