Government has moved to reserve its highly lucrative small- and medium-scale gold mining sector exclusively for local ownership in one of its most far-reaching resource policies in years, barring foreign individuals, foreign-controlled companies and proxy structures from participating in an industry that accounts for more than 65% of national gold deliveries.
The policy, announced by the Ministry of Mines and Mining Development, reclassifies artisanal and small-to-medium-scale mining (ASM) as a strictly indigenous domain, allowing only wholly Zimbabwean-owned entities to operate below a production threshold of 20 kilograms of gold per month or capital investment under US$15m.
Under the new framework, foreign investors will now be confined to large-scale mining operations, effectively redrawing access to the country’s gold value chain at a time when the sector remains a critical source of foreign currency and livelihoods.
Government has defined the ASM category as mining operations producing up to 20 kilograms of gold per month and/or those with capital investment below US$15m. Any operation above that threshold will be classified as large-scale mining, where foreign participation remains allowed.
The move marks one of the most decisive interventions in Zimbabwe’s mining structure in recent years, reshaping access to the gold value chain at a time when the sector remains a key anchor of foreign currency earnings and rural employment.
For government, the policy is framed as an empowerment instrument designed to formalise artisanal mining, protect indigenous operators, and ensure that mineral wealth is retained within local communities.
Existing foreign players in the small-scale segment have been given until January 2027 to regularise their operations.
They are expected to scale up production beyond 20kg per month and increase capital investment above US$15m, failing which mining titles risk cancellation.
Economist, Enock Rukarwa, said the policy could unlock employment and deepen domestic participation in the economy, but warned that consistency in implementation would be critical.
“This is a welcoming development, especially to the local unemployment structure that we have been enduring for a very long time,” Rukarwa said.
“What this will do is create employment opportunities for locals and economic activity for them to participate in.”
He added that policy predictability remains essential for investor confidence and long-term sector stability.
“It is our hope and anticipation that such policies will be maintained and there will not be inconsistencies along the way. We have seen at one time government announcing a certain policy, and a few weeks down the line they reverse it. That must be avoided,” he said.
Economic analyst Trust Chikohora said the structure of small-scale gold mining makes it naturally suited to local participation, arguing that the sector should be protected from creeping foreign dominance.
“Small-scale gold mining requires simple techniques that often involve shallow deposits, making it well suited for locals,” Chikohora said. “Since this sector is already producing most of the gold, it should be protected and promoted.”
He cautioned that foreign firms were increasingly moving into lower-capital segments of mining, traditionally dominated by local operators.
“We are seeing Chinese companies and other foreign players moving into small-scale, low-capital mining that locals can do themselves,” he said. “Foreign investors should focus on large-scale, capital-intensive mining that requires foreign direct investment.”
Chikohora added that Zimbabwe already possesses sufficient technical capacity to run small-scale operations, suggesting that local skills development should be prioritised alongside ownership reforms.
“In terms of management, we have the skills locally,” he said. “If investors want specific top-level expertise, that can still be accommodated within a minority framework, but we have the capacity to run these mines locally.”
Another economist, Vince Musewe, backed the policy shift but cautioned that enforcement would be challenging in a sector often characterised by informal structures and opaque ownership arrangements.
“That’s the right way to go,” Musewe said. “But we know that makorokoza have bosses. It will be difficult to monitor, but it’s important.”
He argued that strategic minerals should remain under domestic control regardless of scale, underscoring a broader nationalist approach to resource governance.
“In my view, precious and strategic minerals should all be locally owned regardless of scale of mining,” he said.
The Zimbabwe Miners Federation (ZMF) said the policy represents a structural reset intended to formalise and empower indigenous miners while closing loopholes that have allowed indirect foreign participation in small-scale operations.
ZMF chief executive Wellington Takavarasha said the reform is designed to ensure that Zimbabweans derive direct economic benefit from the country’s mineral wealth.
“The policy statement marks a major shift in Zimbabwe’s mining sector and is intended to formalise, protect and empower indigenous participation in small-scale mining, particularly in the gold sector,” Takavarasha said.
He said government has moved to close off the segment to foreign-controlled entities, including proxy ownership structures, which have blurred the distinction between local and foreign participation.
“Foreign individuals, foreign-controlled companies, and proxy ownership structures will no longer be permitted to participate directly or indirectly in this segment,” he said.
Takavarasha said the policy aims to strengthen citizen empowerment, reduce external dominance in artisanal mining, and improve domestic wealth retention.
“The policy seeks to ensure that local Zimbabwean miners derive direct economic benefit from the country’s mineral resources,” he said.
While government views the reforms as a step toward inclusive growth and resource nationalism, the success of the policy will depend heavily on enforcement capacity in a sector long characterised by informality, fragmented operations and complex ownership networks. – (Business Times)
