• Record Gold Revenues: Gold sector achieved historic revenues of $393.87 million in June 2025, surpassing previous records 
• Surge in Production: The country exported 4.27 tonnes of gold in June 2025, with small-scale miners (ASM) contributing a record 3.31 tonnes,
• Opportunities and Challenges: While gold production is rising, structural issues like electricity shortages and export surrender requirements hinder growth

Harare- Zimbabwe’s gold sector continued its upward trajectory into 2025, building on the record highs achieved in 2024. In June 2025, revenues hit a peak of $393.87 million, surpassing the May 2025 record of $368.1 million and the November 2024 high of $361 million, driven by soaring global gold prices that motivated increased production.

In June 2025, the country exported 4.27 tonnes of gold, marking the highest monthly output in history since October 2024’s 4.17 tonnes, with ASM contributing an all-time record of 3.31 tonnes, the highest since December 2021’s 3.17 tonnes while large-scale miners (LSM) marginally increasing their output to 0.953 tonnes from 0.936 tonnes in May.

This surge in production propelled gold export proceeds to a new peak of US$393.87 million. Gold remains Zimbabwe’s largest foreign currency generator, accounting for 70% of foreign currency receipts and over 50% of total exports, reflecting its pivotal role in the national economy.

The unprecedented growth in Zimbabwe’s gold production is fueled by a combination of favourable government policies and record-high global gold prices. The 100% USD payments to ASM, alongside increased gold buying prices by Fidelity Gold Refinery (FGR) aligned with global standards, has significantly incentivised production.

Additionally, the mine-to-point-of-sale gold tracking policy, implemented on September 30, 2024, has curbed side-marketing, which previously cost the country billions annually.

These measures have particularly bolstered ASM, who benefit from lower operational overheads compared to LSM.

However, large-scale miners, such as Caledonia Mining Corporation, face higher costs due to rising labour wages, electricity shortages, and a 30% export surrender requirement in exchange for the overvalued local currency, which acts as a de facto tax.

Reports indicate that miners have struggled with this surrender policy, with platinum producers haven’t paid their 30% equivalent in surrender portions since January 2025, highlighting its detrimental impact on the sector’s efficiency and growth potential.

The country’s year-to-date output reached 20.1 tonnes by June, a significant increase from 13.87 tonnes in the same period of 2024, positioning Zimbabwe as a rising player among Africa’s top gold producers, such as Ghana, South Africa, Mali, Burkina Faso, and Tanzania.

Compared to regional peers, Zimbabwe’s production, while growing, lags behind Africa’s top producers; Ghana, the continent’s leader, is projected to output around 158 tonnes in 2025, up from 149 tonnes in 2024, benefiting from stable policies and large-scale operations, whereas South Africa’s output hovers around 100 tonnes, constrained by aging infrastructure and high costs.

Mali and Burkina Faso produced 105 and 98.6 tonnes respectively in 2024, with similar projections for 2025, emphasizsng Zimbabwe’s potential for catch-up through policy reforms amid its artisanal-driven model.

ASM, contributing nearly 70% of Zimbabwe’s gold output, have outpaced LSM, with their deliveries surging over 50%  year-on-year to 14.5  tonnes in the first 6 months of 2025 from 7.7 tonnes last year.

The Zimbabwe Miners Federation (ZMF) earlier projections aligned well with Equity Axis projections that the country could surpass its 40-tonne target, potentially reaching 50–52 tonnes, provided formalisation and support for ASM are scaled up.

However, structural challenges, including electricity shortages and smuggling (estimated to cause US$1.5 billion in annual losses), continue to hinder the sector. Investments in exploration, mechanisation, and beneficiation, estimated to require over US$1 billion, are critical to achieving Zimbabwe’s ambitious long-term goal of 100 tonnes annually.

Globally, gold prices have soared in 2025, breaching 26 new all-time highs in the first half of the year, following 40 record highs in 2024. Prices peaked at US$3,500 per ounce in April and hit US$3,432 on May 6, with projections from Goldman Sachs suggesting a year-end price of US$3,700.

This surge, up 40% from the previous year, is driven by geopolitical tensions, including ongoing wars in Gaza with Israel then Russia’s continued bombardment of Ukraine, and trade uncertainties sparked by the Trump administration’s policies.

These factors have solidified gold’s role as a safe-haven asset, with central banks and investors increasing demand, as evidenced by the highest inflows into gold exchange-traded funds (ETFs) since 2022.

For Zimbabwe, these elevated prices have amplified export earnings, with gold revenues reaching US$1.84 billion in the first half of 2025, a 25.7% increase from US$1.46 billion in 2024.

The World Bank forecasts gold prices to rise by 35% year-on-year in 2025, remaining 150% above the 2015–2019 average, presenting a critical opportunity for Zimbabwe to bolster its forex reserves.

To fully capitalise on this bullish global market, Zimbabwe must address policy and operational challenges. Reducing taxes and export surrender requirements to allow LSM to retain at least 90% of their earnings could spur investment in advanced machinery and value addition, potentially pushing production toward 50 tonnes annually.

Enhanced support for ASM through equipment leasing, technical training, and subsidised fuel could further amplify their output, given their dominance in the sector.

While Zimbabwe’s gold industry is poised for a historic year, sustained government efforts to curb smuggling, improve mining efficiencies, and formalise the ASM sector will be crucial to maximising its economic impact and solidifying its position among regional and global gold producers. Continued policy refinements in Zimbabwe, inspired by more investor-friendly approaches in Ghana, could further leverage these global dynamics to close the regional production gap and drive economic growth.

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