Zimbabwe unveils new gold royalty to cash in on market rally

Fri Nov 28 2025

Bullion has surged 58% this year to about $4 160 per ounce, driven by haven demand, central-bank buying and expectations of lower global interest rates.

Zimbabwe will introduce a new royalty structure for gold miners as the mineral-rich southern African nation seeks to cash in on a surge in the price of the metal.

The measure, effective January 1, is intended to ensure the mining industry contributes its fair share to the fiscus during commodity booms and eliminate arbitrage between different categories of operators, Finance Minister Mthuli Ncube said during a budget presentation on Thursday.

“The royalty will now be linked to the price level or price category,” he told lawmakers at the Chinese-built Parliament in Mount Hampden, north of the capital, Harare. Under the proposed changes, a tax of between 3% to 10% will be applied, depending on the price per ounce of gold.

“This will ensure that government is able to share on the upside of any price increases,” Ncube said.

Bullion has surged 58% this year to about $4 160 per ounce, driven by haven demand, central-bank buying and expectations of lower global interest rates.

Caledonia Mining Corp and Kavango Resources Plc are among the gold producers with operations in Zimbabwe.

Zimbabwe is seeking ways to boost revenue as it forecasts expenditure to increase to ZWG290.9 billion ($11 billion) in 2026 from ZWG219 billion this year, part of its effort to create jobs and grow the economy.

Gross domestic product is still expected to expand 5% next year, down from a 6.6% forecast for 2025, Ncube said.

To promote gold as an alternative investment asset, the government plans to widen who may legally possess or trade the metal to include authorized dealers, the national refinery and individuals with certified bars, the minister said.

It will also allow holders of those bars to trade them and will criminalise any tampering or fraudulent alteration — measures aimed at curbing illicit leakages and establishing certified gold as a secure, traceable store of value.

Source: https://www.moneyweb.co.za