Zimbabwe restricts small-scale gold mining to citizens, tightening sector rules

Zimbabwe has barred foreign companies and individuals from participating in small-scale gold mining, a move officials say is aimed at boosting local participation and retaining more mining earnings within the country while supporting local miners.

The decision, announced in Harare on Friday by Mines Minister Polite Kambamura, requires foreign investors in small-scale mining operations to either expand production and capital investment or exit the sector by January, authorities said. The policy is aimed at separating large industrial mining projects from smaller operations reserved for local participants.

“The small-scale gold-mining sector in Zimbabwe is reserved exclusively for Zimbabwean citizens,” Kambamura said. The classification applies to miners producing up to 20 kilograms of gold per month and operating with capital investments below $15 million. 

Policy shift targets local currency reliance

Small-scale miners remain a major part of the country’s gold industry, accounting for about 65 percent of total output. Official figures show that in the first four months of this year, gold production reached about 12,637 kilograms, a 1.3 percent increase compared with the same period last year, reflecting steady activity across the sector despite tighter oversight.

The policy shift comes as the government continues efforts to reduce reliance on the U.S. dollar, which has dominated everyday transactions in Zimbabwe for more than a decade. Policymakers say the widespread use of foreign currency has helped stabilize prices in recent years, but has limited the central bank’s ability to manage liquidity, inflation, and monetary conditions.

ZiG gradual currency transition

At the center of the country’s current economic approach is the Zimbabwe Gold (ZiG), a domestic currency introduced to improve price stability and restore confidence in local monetary policy. Officials at the Reserve Bank of Zimbabwe say the transition toward a system anchored on the ZiG will be gradual, with no immediate disruption to existing contracts.

Foreign currency accounts will continue to operate, allowing businesses and individuals to hold U.S. dollars and other hard currencies. Authorities also said there will be no forced conversion of foreign balances, and that loans denominated in foreign currency will remain payable in the original currency. Importers will still access foreign exchange through formal banking channels.

Over time, the government plans to reduce the use of U.S. dollar cash in everyday retail transactions, including small purchases such as groceries, as part of efforts to strengthen the domestic currency and stabilize business planning. The approach aims to avoid economic shocks while gradually rebuilding confidence in local financial systems over time horizon.