Zimbabwe has set an ambitious target of producing 39,000 tons of gold in 2024, a notable increase from the 33,000 tons achieved last year. However, industry insiders caution that systemic challenges faced by small-scale miners could significantly hinder progress toward this goal.
Farai Maguwu, director of the Centre for Natural Resource Governance (CNRG), highlighted the struggles small-scale miners face when attempting to sell their gold to Fidelity Printers and Refiners, the country’s sole gold buyer. In an exclusive interview, Maguwu pointed out issues such as limited access to financing, outdated equipment, and complex regulatory frameworks, which are preventing miners from reaching their full production potential.
“Gold remains on the market largely because of favorable pricing. However, small-scale miners are often forced to navigate complex and inconsistent payment systems, such as government mandating transactions in varying percentages of US dollars or other currencies,” Maguwu explained.
Small-scale miners are essential to Zimbabwe’s gold production, and selling to Fidelity Printers offers benefits such as fair pricing and access to formal financial services. But according to Maguwu, many miners are unable to take full advantage due to existing barriers, including outdated legislation that complicates operations for artisanal miners, a subset of the small-scale mining community.
“There’s a formalization push for small-scale mining, but not for artisanal mining, even though they are contributing significantly to gold production,” he said.
To meet the government’s gold production target, Maguwu stressed the need for a strategic overhaul, suggesting that targeted interventions could be the key to unlocking the full potential of Zimbabwe’s small-scale miners. Proposed measures include improved access to equipment, streamlined regulatory frameworks, and more comprehensive training in gold processing.
Despite the government’s ambitious production goal, experts predict that without meaningful reforms to support small-scale miners, the output may fall short. Investing in the sector is not only crucial for achieving national targets but is also vital for enhancing the livelihoods of the miners themselves.
