Harare -Zimbabwe’s mining industry has hailed the recent record-breaking increase in global gold prices as a significant economic opportunity, with the Zimbabwe Miners Federation (ZMF) stating that the development could help drive national growth,this publication can report.
The global gold price has reached an all-time high of USD 3,400 per ounce (roughly USD 100 per gram), spurred by economic uncertainty and escalating trade tensions worldwide.
ZMF president Henrietta Rushwaya called the surge a “game-changer” for the country’s gold sector, particularly benefiting small-scale miners who are key contributors to Zimbabwe’s gold output.
“This gold price surge is transformative for our economy,” said Rushwaya.
“As gold remains one of our leading exports, the increased revenues will boost foreign currency inflows, strengthen the local currency, and generate employment across the mining sector. It aligns perfectly with our national development goals.”
Rushwaya emphasized that with the right policy framework Zimbabwe can capitalize on the price hike to further formalize and support small-scale mining operations.
International analysts attribute the gold price rally to investor demand for safe assets amidst global uncertainty, including U.S.-China trade tensions and a weakening U.S. dollar.
Local economist Tawanda Chimutsanyu noted that the price surge is likely to enhance Zimbabwe’s foreign reserves, support the new Zimbabwe Gold (ZiG) currency, and improve import capacity.
However, he warned about potential confusion due to unclear communication regarding the currency’s gold backing.
“In principle, higher gold prices should boost exports and reserve strength, but clear guidance is needed on whether our currency remains backed by gold,” Chimutsanyu stated.
Industry observers also highlighted increased income prospects for artisanal miners and potential job growth. Still, they cautioned that without tighter regulation, the country could see a rise in gold smuggling and leakages.
If current trends persist, analysts believe the gold price could soon hit USD 3,500 per ounce, though they advised caution given the volatile nature of global markets.
This development coincides with the Ministry of Mines and Mining Development’s push toward “Vision 2030,” which aims for the mining sector to contribute US$12 billion annually to Zimbabwe’s GDP.
The ZMF is a government-backed body promoting sustainable growth and transformation in the Artisanal and Small-scale Mining (ASM) sector, represents over 1.5 million miners. These miners account for around 60% of Zimbabwe’s annual gold deliveries to Fidelity Gold Refinery (FGR), the nation’s official gold buyer.