Zimbabwe will cap government spending on its gold incentive scheme at $300 million through the end of 2026, as authorities seek to support rising gold production while containing the program’s growing fiscal risks.

Finance Minister Mthuli Ncube and Reserve Bank of Zimbabwe Governor John Mushayavanhu disclosed the spending limit in a letter to the International Monetary Fund. The move will also trigger a review of the scheme ahead of Zimbabwe’s 2027 national budget.

Gold boom raises fiscal pressure

Zimbabwe’s gold sector has become an increasingly important source of foreign currency and economic growth. The IMF projects the economy will expand about 5% in 2026, supported partly by strong mining activity and favorable gold prices.

The government’s gold incentives are designed to encourage deliveries to official buyers, supporting formal gold production and helping strengthen confidence in the ZiG, Zimbabwe’s gold-backed currency.

But higher gold prices and rising production have increased the cost of maintaining the program. The IMF has welcomed Zimbabwe’s commitment to contain fiscal risks from gold delivery incentives and assess whether the scheme remains appropriate in the 2027 budget.

Zimbabwe’s gold production climbs

Zimbabwe produced 21.4 metric tons of gold in the first half of 2026, according to the figures provided, up from 20.3 tons a year earlier. Gold export earnings also rose sharply, reaching $3.1 billion.

The increase builds on a record 46.7 tons of gold produced in 2025, highlighting the growing importance of gold mining to Zimbabwe’s economy.

Small-scale and artisanal miners remain central to the industry, accounting for a substantial share of national output, while large-scale mining projects are adding capacity.

IMF program puts focus on fiscal discipline

The spending cap comes as Zimbabwe works to strengthen its relationship with international lenders through a 10-month IMF Staff-Monitored Program focused on fiscal discipline, monetary stability and economic reforms.

For Zimbabwe, the challenge is balancing incentives that encourage gold production with the need to protect public finances. The 2027 budget review could determine whether the government maintains, reduces or redesigns the scheme as gold remains a key pillar of the country’s mining economy.