Finance Minister Mthuli Ncube has indicated he is open to adjusting proposed changes to gold royalties after miners warned that doubling the tax could harm the industry and encourage smuggling.
In his 2026 National Budget, Ncube proposed a new sliding scale for gold royalties. Under the plan, miners would pay 10% of their gold earnings to the government, up from the current 5%.
At this rate, Zimbabwe would have the highest gold royalty in Africa and one of the highest in the world, making the country less attractive to new investors, according to Isaac Kwesu, CEO of the Chamber of Mines.
Speaking to business leaders at a post-budget seminar on Monday, Ncube said:
“We have listened to comments on the royalties on gold. So, you may see some tweaking here and there. We received your submissions.”
Ncube argued that investors are generally less worried about taxes and more interested in the potential for mineral extraction.
However, the Zimbabwe Miners Federation (ZMF), which represents small-scale miners responsible for over 75% of the country’s gold production, warned:
“New investment in exploration and mine development will stall. We project a dramatic increase in smuggling as miners seek better returns in neighbouring countries with lower fiscal impositions.”
Presidential spokesperson George Charamba passionately defended the increase in gold royalties. He wrote on X:
“The way the debate on the rise of royalties on gold has been unfolding suggests embarrassing ignorance of principles of taxation. It’s as if the page on WINDFALL TAXES was torn in the Public Finance book read.
“In the absence of such tax reviews, what it would mean is that the financial benefits of that WINDFALL would largely leave the country as DIVIDEND, leaving all of us who are NON-SHAREHOLDERS but STAKEHOLDERS of the GOLD-BEARING EARTH with nil benefits and COSTLY CAVERNS left behind by gold-diggers (pun intended).
“Outside rank ignorance, why would a bona fide Zimbabwean argue against upward review of royalties, thus making the country assume a share of the windfall?”
More: newZWire
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