HARARE, Aug 10 – Zimbabwe will cap government spending on its gold-buying incentive scheme at $300 million through the end of 2026 and assess the programme ahead of the 2027 national budget, according to a letter from the country’s economic authorities to the International Monetary Fund.
Finance Minister Mthuli Ncube and Central Bank Governor John Mushayavanhu said the spending ceiling is intended to limit the government’s exposure to fluctuations in gold prices and changes in gold deliveries. In the letter of intent included in Zimbabwe’s Staff Monitored Program report, the officials said, “To contain fiscal risks related to gold-price movements and gold deliveries in 2026, Government will limit total spending on the gold incentive scheme through end-2026 to $300 million.”
The government will subsequently assess the financial sustainability and scope of the incentive programme as part of the preparation of the 2027 national budget, which Zimbabwe is expected to present in November.
The gold incentive scheme has been an important component of Zimbabwe’s efforts to support domestic gold purchases and strengthen confidence in the Zimbabwe Gold, or ZiG, currency introduced in 2024. The currency is backed by a basket of reserves that includes gold and foreign currency, making developments in the domestic gold market relevant to broader efforts to stabilise Zimbabwe’s monetary system.
The decision to impose a spending limit comes as authorities seek to balance support for gold production and currency stability against the fiscal cost of the programme. Rising gold prices can increase the value of government incentives and gold deliveries, potentially creating additional pressure on public finances.
The review also comes as Zimbabwe seeks to strengthen its engagement with international financial institutions. The country entered a 10-month IMF Staff Monitored Program in February, providing a framework for economic reforms and policy monitoring as Harare works to address longstanding debt challenges.
Zimbabwe has remained largely shut out of international capital markets since its 1999 debt default, with outstanding obligations to institutions including the World Bank, the Paris Club and the African Development Bank continuing to constrain access to external financing.
Despite these challenges, the country’s economy is expected to expand. The IMF forecasts economic growth of 5% in 2026 and 4.2% in 2027, while the government prepares its next national budget against a backdrop of ongoing monetary and fiscal reforms.
Gold production has also continued to increase. Zimbabwe produced 21.4 metric tons of gold during the first half of 2026, compared with 20.3 metric tons in the same period of 2025. Gold export earnings rose 69% year-on-year to $3.1 billion, according to central bank data.
The stronger performance of the gold sector provides Zimbabwe with an important source of foreign-exchange earnings, but it also increases the scale of the government’s exposure to fluctuations in the commodity market. The $300 million spending ceiling therefore represents an effort to place a clearer fiscal boundary around a programme that has become increasingly important to the country’s currency and gold-market strategy.
The outcome of the 2027 review will determine whether the incentive scheme is maintained at its current scale, modified or reduced as Zimbabwe seeks to balance support for gold production with fiscal sustainability and broader economic stabilisation.
