Harare, (New Ziana)- Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube on Thursday unveiled a new royalty framework for gold producers in Zimbabwe.
Presenting the 2026 National Budget, Prof Ncube said the move will ensure the mining sector contributes a fair share of revenue to the Fiscus during periods of commodity price boom, as well as eliminate arbitrage between categories of miners.
Currently, when large scale mines sell gold, they pay 5 percent in royalties to the government but Prof Ncube proposed a scale, where royalties move with the gold price, meaning at current prices, mines will pay 10 percent, the highest royalty in the region.
“The mining sector contributes a fair share of revenue to the fiscus during periods of gold price boom as a way to eliminate arbitrage between categories of miners. I propose to harmonise and review the royalty structure of all gold producers. Royalty will now be linked to the price level or price category,” he said.
Under the new system, gold priced between US$0 and US$1 200 per ounce will attract a 3mpercent royalty, gold priced between US$1 201 and US$2 500 per ounce will attract a 5 percent royalty while gold priced above US$2 500 per ounce will attract a 10 percent royalty.
The new royalty fees take 1effect from 1 January next year.
Meanwhile, Prof Ncube said he expects inflation in local currency to fall to single digits in the first quarter of next year.
He said this would be the first time since 1997 that Zimbabwe sees such levels of inflation.
According to Zimbabwe Statistical Agency, November inflation fell to 19 percent, from 32.7 percent in October.
Annual ZiG inflation stood at 32.7 percent in October this year, and Prof Ncube said the government expects single-digit inflation next year.
Prof Ncube said inflation developments this year reflect the cumulative positive impact of prudent fiscal policy, sustained tight monetary policy, and proactive money supply growth management.
In terms of inflation, month on month ZiG inflation was -0.4 percent, while annual inflation was 32.7 percent in October this year while US dollar month-on-month and year on year inflation was 0.3 percent and 13 percent respectively, in October.
“In 2026, the ZiG annual inflation rate is projected to decline to single digit levels, with a projected average of 12.1% for the year, reflecting anchored inflation expectations, currency and exchange rate stability, as well as strengthened monetary fiscal policy coordination,” Prof Ncube said.
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