Zimbabwe to raise royalties on gold producers to cash in on bullion boom

Zimbabwe will raise royalties on gold producers as it seeks to capitalise on record-high bullion prices, according to the country’s 2026 national budget statement released on Thursday.

Under the new revenue measures, gold miners will pay a 10% royalty when prices exceed $2,501 per ounce, according to Reuters. The adjustment is part of broader efforts to boost state income and strengthen local industry.

Gold prices have slipped 5% from the all-time high of $4,381.21 reached on October 20, but have mostly remained above $4,000 an ounce.

“In order to ensure the mining sector contributes a fair share of revenue to the Fiscus during periods of commodity price boom, as well as eliminate arbitrage between categories of miners, I propose to harmonise and review the royalty structure for all gold producers,” Finance Minister Mthuli Ncube was quoted as saying in the speech.

Zimbabwe depends heavily on gold and tobacco exports for foreign currency. The country’s major gold producers include Kuvimba Mining House, Padenga, Caledonia Mining Corporation and RioZim.

Gold has played an increasingly important role in stabilising Zimbabwe’s economy in recent months.

Business Insider Africa earlier reported that the country’s annual inflation rate could fall by half by the end of 2025, supported by a more stable local currency and sustained strength in global gold prices, according to a report from the Confederation of Zimbabwe Industries (CZI).

The ZIG currency has strengthened on the back of booming gold sales. The surge in bullion-related revenue has helped reinforce monetary stability and improve confidence in the country’s financial system.