Zimbabwe Caps Gold Incentive Scheme At $300 Mln As It Prepares 2027 Budget

August 10, 2026
By Mintesinot Nigussie

Zimbabwe will limit spending on its gold-buying incentive programme to 300 million US dollars through the end of 2026 and assess its future scope as part of preparations for the 2027 national budget. The review comes as gold production and export earnings continue to rise. Zimbabwe produced 21.4 metric tons of gold in the first half of 2026, compared with 20.3 metric tons a year earlier, while gold export earnings increased 69 percent to 3.1 billion US dollars.

The spending ceiling is intended to contain fiscal risks arising from movements in gold prices and deliveries, Finance Minister Mthuli Ncube and Central Bank Governor John Mushayavanhu said in a letter to the International Monetary Fund, according to Bloomberg. The government will use the 2027 budget process to determine whether the incentive programme remains financially sustainable and whether its scope needs to be changed. The budget is scheduled to be presented in November.

The programme supports government purchases of gold and has been used to bolster confidence in the Zimbabwe Gold, or ZiG, currency introduced in 2024. The initiative forms part of measures aimed at stabilising the currency and rebuilding confidence in the financial system. The spending review also comes as Zimbabwe seeks to improve its relationship with international lenders. The country entered a 10-month IMF staff-monitored programme in February following years of negotiations over its financial obligations.

Zimbabwe has been excluded from international capital markets since defaulting in 1999 on debts owed to institutions including the World Bank, the Paris Club and the African Development Bank. The country continues to address billions of dollars in outstanding debt. The IMF projects Zimbabwe's economy will grow 5 percent in 2026 and 4.2 percent in 2027.

Source: FSX Business News