Finance and Economic Development Minister Professor Mthuli Ncube has unveiled a sweeping reform of Zimbabwe’s gold royalty framework, introducing a sliding-scale system that will see large-scale producers paying as much as 10% in royalties at prevailing international gold prices — the highest effective rate in the region.
Presenting the 2026 National Budget, Minister Ncube said the overhaul is aimed at ensuring fairness, enhancing Government revenue during commodity price booms, and eliminating loopholes that previously created arbitrage opportunities between different categories of gold miners.
“The mining sector contributes a fair share of revenue to the fiscus during periods of commodity price boom… I propose to harmonize and review the royalty structure of all gold producers,” he said.
Under the new system, royalties will be aligned with global price movements through a three-tier band:
- 0 – US$1,200/oz: 3% royalty
- US$1,201 – US$2,500/oz: 5% royalty
- US$2,501/oz and above: 10% royalty
With gold currently trading above US$2,500 per ounce, producers immediately fall into the uppermost bracket, doubling their royalty obligations from the previous flat rate of 5% to 10%.
Minister Ncube said the reform ensures that Government shares in the upside of rising gold prices, while cushioning miners during downturns, thereby offering a more responsive, market-aligned royalty system.
The gold industry remains a cornerstone of Zimbabwe’s economic agenda, contributing a significant share of mineral export receipts and anchoring foreign currency inflows. Authorities view the revised royalty regime as part of a broader strategy to strengthen oversight, promote beneficiation, and ensure the country derives maximum value from its mineral wealth.
The 2026 Budget also includes complementary measures aimed at boosting investment in exploration, tightening regulatory compliance, and incentivizing value addition within the mining sector. Government expects these reforms to improve transparency, support long-term sector growth, and enhance national revenue mobilization as global mineral markets continue to evolve.
By harmonizing royalty structures across all gold producers and aligning them with global price dynamics, the Treasury hopes to close long-standing gaps that previously encouraged arbitrage between artisanal, small-scale, and large-scale mining operations.
As Zimbabwe positions itself to leverage rising gold prices and increased production, the sliding-scale royalty model signals a decisive shift toward a more equitable and revenue-responsive fiscal framework for one of the country’s most strategic commodities.
