Gold miners remain at the centre of policy debates after the Reserve Bank of Zimbabwe suspended plans to introduce a 90% export retention threshold for small-scale gold producers, a move that had been widely anticipated to boost earnings and stimulate output in the sector.

The development comes as the central bank maintained its benchmark interest rate at 35%, signalling a cautious monetary stance aimed at containing inflationary pressures, even as gold continues to anchor foreign currency inflows critical to economic stability.

In its latest Monetary Policy Committee statement, the RBZ acknowledged that recent gains in stabilising inflation could face pressure from rising global fuel prices, which have begun filtering into the domestic economy. Governor John Mushayavanhu said the bank would “stay the course” on its policy direction to anchor inflation expectations and preserve price stability.

Inflation, which declined to 4.1% in January 2026 and further eased to 3.85% in February, marked Zimbabwe’s first sustained period of single-digit inflation in over three decades. However, the central bank warned that the fuel price surge represents a supply-side shock that cannot be effectively managed through monetary policy.

“The increase in fuel prices is a supply-side shock which cannot easily be managed through monetary policy,” the MPC noted, adding that second-round effects—such as rising transport and production costs—could push consumer prices higher.

For gold miners, the policy focus on inflation comes at a time when expectations for improved foreign currency retention have been dampened. The RBZ said the proposed 90% retention threshold for small-scale miners has been put on hold due to operational and logistical challenges, particularly limited access to banking services among artisanal miners.

The delay highlights structural challenges within Zimbabwe’s mining sector, where a large portion of gold production is generated outside formal banking channels. This has made policy implementation difficult, despite the sector’s critical role in driving export earnings.

Gold remains one of Zimbabwe’s top foreign currency earners, with the RBZ reporting total foreign currency receipts of US$3.35 billion in the first two months of 2026, compared to US$1.89 billion during the same period last year. The increase has been largely driven by mining exports, particularly gold and platinum group metals.

These inflows have helped strengthen foreign reserves and stabilise the exchange rate, providing support for the ZiG currency and reinforcing the central bank’s broader disinflation strategy.

However, the suspension of the retention policy leaves miners with continued constraints on liquidity, limiting their ability to reinvest in equipment, expand production, and formalise operations. For many small-scale miners, improved retention would have provided critical relief amid high operating costs and limited access to financing.

At the same time, the RBZ has maintained tight liquidity conditions, keeping statutory reserve requirements unchanged at 15% for savings and time deposits and 30% for demand deposits. The move signals the bank’s commitment to controlling money supply growth while navigating external shocks.

The central bank also projected that month-on-month inflation would rise between March and May before stabilising from June, indicating that current price stability may face temporary disruptions due to fuel-driven cost pressures.

Despite these headwinds, the RBZ expressed optimism about economic growth, aligning its policy stance with targets under the National Development Strategy 2, which projects growth of above 5% in 2026. 

However, it acknowledged downside risks from both global and domestic factors, particularly the impact of rising fuel prices.