Zimbabwe: Zim Surpasses 2024 Gold Production Target

Zimbabwe surpassed its 2024 gold production target after miners delivered a record 36,48 tonnes, as bullish global prices and sustained Government support anchored strong production.

As production touched new heights, from about 30,1 tonnes in 2023, gold exports also soured, totalling US$2,5 billion, from about US$1,8 billion the prior year.

Economic analysts attributed the strong performance of gold in 2024 to a combination of strategic Government support initiatives and favourable global prices driven by world economic uncertainties.

While Zimbabwe has earned significant amounts of money from exports, driven by its mining sector, it continue to lose a lot of precious foreign currency due to its huge import bill.

While Zimbabwe’s imports topped US$13 billion, the country’s import bill was equally staggering at US$9,5 billion, which widened the country’s trade deficit.

The Government is working on various initiatives to reboot the country’s productive capacity to cut imports.

Looking ahead, gold mining industry forecasts remain encouraging as analysts predict continued growth in gold deliveries and revenues in the face of concerns associated with new US President Donald Trump’s policies and intensified support by the Government to boost production.

“Zimbabwe’s proactive approach to mining policy and infrastructure development sets a solid foundation for sustained growth,” remarked financial strategist Michael Chikweche.

“The Government’s commitment to surpassing previous milestones reflects a strategic vision aimed at capitalising on favourable market conditions and advancing national economic objectives,” he said.

The economic implications of Zimbabwe’s record gold production extend beyond mere statistics.

In 2024 alone, gold exports earned the nation approximately US$2,5 billion, reinforcing the mining sector’s pivotal role as a primary revenue generator and economic stabiliser.

“The significance of gold revenues cannot be overstated,” affirmed economist Samantha Moyo. “These earnings bolster foreign exchange reserves and support critical national development initiatives.”

Gold is one of the precious metals used by the central bank to anchor Zimbabwe’s currency, Zimbabwe Gold (ZiG).

The new currency has demonstrated durable resilience since its launch in April last year and has helped to stabilise the exchange rate and tame rampant inflation.

In tandem with burgeoning production figures, Zimbabwe’s mining sector continues to attract international attention and investment.

“The country’s commitment to transparency and regulatory reforms has enhanced investor confidence,” noted Mr Chikweche, highlighting the country’s evolving role as a preferred destination for mining capital.

According to mining industry expert, Dr Farirai Mukwewa, “Zimbabwe’s ability to surpass its 35 tonne target reflects a robust policy framework that incentivises production and supports small-scale miners.”

His sentiment echoes widespread optimism within the industry, highlighting the pivotal role of policy in driving sectoral growth.

Small-scale miners have in recent years emerged as the driving force behind Zimbabwe’s record gold production, contributing approximately 65 percent of the total output in 2024.

This sector’s resilience and adaptability were instrumental, particularly amidst global economic fluctuations and logistical challenges.

“The incentivisation of small-scale miners has been crucial in harnessing local talent and maximising production efficiencies,” noted Dr Mukwewa, underscoring the sector’s pivotal role in Zimbabwe’s economic resurgence.

The surge in global gold prices catalysed the mining success story.

Beginning the year at US$2 025 per ounce, global prices soared to a staggering US$2 771 per ounce by December 2024, marking an unprecedented increase driven by geopolitical tensions and investor hedging strategies.

Thomas Gono, president of the Gold Producers Association, in an interview in December 2024, lauded the success of the Government’s gold mobilisation exercise, emphasising its role in fostering transparency and accountability within the sector.

“The mobilisation programmes have not only increased gold output but have also strengthened relationships between miners and the government,” he stated.

“These interventions demonstrate a commitment to ensuring that the country’s mineral wealth is effectively harnessed for national development.”

Mr Gono also pointed out that the collaborative approach adopted by the Government, which involves engaging stakeholders in the industry, has been instrumental in aligning policy objectives with on-the-ground realities.

This has created an enabling environment for sustained growth and investment in gold production.

As Zimbabwe continues to position gold as a cornerstone of its economic stability, particularly as one of the key anchors of ZiG, the Government’s efforts to formalise the sector and reduce leakages are expected to yield even greater results.

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Globally, analysts maintain a bullish outlook for gold prices in 2025, anticipating continued growth driven by several key factors.

Goldman Sachs projects that gold could exceed US$3 000 per ounce by the end of 2025, citing increased central bank acquisitions and rising federal debt as primary catalysts.

The bank’s research highlights that as interest payments consume a larger portion of national debt expenses, investors may turn to gold as a hedge against fiscal instability.

Additionally, declining interest rates are expected to boost gold exchange-traded fund (ETF) inflows, further supporting price increases.

Deutsche Bank shares a similarly optimistic perspective, setting a price target of US$2 725 per ounce for 2025, with a potential range between US$2 450 and US$3 050.

The bank emphasises the role of heightened central bank activity in bolstering gold’s long-term value, noting that in an environment of escalating national debts, gold serves as a safeguard against continuous currency devaluation and persistent inflation.

This sentiment was echoed by JPMorgan, which forecasts that gold will reach US$3 000 per troy ounce, attributing this anticipated rise to policy uncertainties and geopolitical risks that enhance gold’s appeal as a safe-haven asset.

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