Gold Producers Association of Zimbabwe (GPA) is projecting production of more than 55 tonnes and export earnings of US$5 billion. However, foreign exchange shortages, delays in export proceeds, and persistent operational constraints are curbing the sector’s ability to expand capacity and fully capitalise on a sustained bullion price rally, Mining Zimbabwe can report.
By Ryan Chigoche
Gold production rose 31% to 50.6 tonnes in 2025 from 38.5 tonnes a year earlier, while export earnings surged to US$4.6 billion from US$2.5 billion, accounting for 44% of Zimbabwe’s total exports.
The strong performance has reinforced confidence in the sector’s growth prospects, supported by firm gold prices and a growing pipeline of expansion projects and mine restarts expected to add new production capacity.
Speaking at the Chamber of Mines Annual Conference in Victoria Falls (Gold Symposium) held last week, Gold Producers Association of Zimbabwe chairperson Qhubeka Nkomo said the medium- to long-term outlook for the industry remains favourable, with production expected to surpass 55 tonnes in 2026 and export earnings projected to reach US$5 billion.
“The medium- to long-term prospects for the gold industry are on the upside, with favourable prices expected to persist alongside ongoing expansion projects across the country. The revival of closed mines, including Red Wing in Penhalonga and Mazowe Mine, is also expected to support higher output as these operations and new developments ramp up production, with gold output expected to surpass 55 tonnes in 2026,” Nkomo said.
The GPA’s projections are underpinned by a combination of mine restarts and new developments. Efforts to bring previously closed operations such as Red Wing and Mazowe Mine back into production are expected to provide near-term output gains, while projects being advanced by Kavango Resources in Filabusi and at Dokwe in Tsholotsho are set to contribute additional supply over the medium term.
Despite the favourable outlook, producers say a number of structural constraints continue to limit the industry’s ability to fully benefit from the current gold price environment.
Producers say structural bottlenecks continue to constrain the sector’s growth potential, with access to capital and foreign currency emerging as the most significant challenges.
Many gold producers are struggling to secure offshore financing for expansion projects and are increasingly relying on internally generated cash flows to fund mine development and capacity upgrades. Financing conditions have also tightened, with some lenders demanding physical gold as collateral and requiring producers to maintain escrow accounts to mitigate counterparty risk.
Foreign exchange shortages are adding to the pressure, limiting producers’ ability to meet both operational requirements and capital equipment needs.
“Most gold producers that are expanding their operations continue to report foreign exchange shortages in meeting both operational requirements and capital equipment needs, which is already delaying plant expansion projects,” Nkomo said.
Delays in the settlement of ZiG equivalents under the Reserve Bank of Zimbabwe’s export surrender framework have further strained liquidity across the sector.
“Producers have also reported that payment delays are creating liquidity and operational pressures, with many now forced to operate on discounted cash flows,” he said.
Miners say the widening gap between official and parallel foreign exchange market rates is eroding value and complicating cash flow planning.
The financial pressures come as producers contend with a high-cost operating environment characterised by elevated electricity tariffs, significant fiscal charges, and a high cost of capital.
While strong bullion prices continue to support profitability, industry leaders warn that any sustained decline in gold prices could expose viability challenges, particularly for higher-cost operations.
Even so, producers remain confident the sector can sustain its growth trajectory if policy, liquidity, and infrastructure bottlenecks are addressed.
