Zimbabwe caps gold-buying incentives at $300 million

Zimbabwe is capping government spending on its gold-buying incentive scheme at $300 million through the end of 2026. According to a letter sent to the International Monetary Fund (IMF) by Finance Minister Mthuli Ncube and Central Bank Governor John Mushayavanhu, the limit is designed to mitigate fiscal risks stemming from volatility in gold prices and delivery volumes.

The incentive program is a central component of the government's strategy to support the Zig, the gold-backed currency introduced in 2024, and to restore confidence in the national financial system. As part of the 2027 national budget preparations, officials will review the program to determine its long-term financial sustainability and whether its scope requires adjustment.

This fiscal move occurs as Zimbabwe attempts to rebuild relationships with international lenders and address billions in outstanding debt. The country is currently under a 10-month IMF staff-monitored program. Despite the spending cap, Zimbabwe's gold sector is expanding; the country produced 21.4 metric tons of gold in the first half of 2026, compared to 20.3 metric tons in the same period the previous year, with export earnings rising 69% to $3.1 billion.