Zimbabwe’s small-scale mining sector has successfully influenced a shift in monetary policy, after the Zimbabwe Miners Federation (ZMF) led by President Henrietta Rushwaya secured a temporary halt to the Reserve Bank of Zimbabwe (RBZ)’s disputed 90:10 gold retention framework.
The decision followed a Monetary Policy Committee (MPC) meeting held on 24 March 2026, where the central bank acknowledged concerns raised by miners regarding the policy’s practicality. Authorities agreed to suspend its implementation to allow for further dialogue and to resolve operational challenges.
The policy required artisanal and small-scale miners to keep 90% of their gold earnings in foreign currency while converting 10% into the local unit, Zimbabwe Gold (ZiG). However, ZMF argued that the arrangement placed strain on the sector, which produces the majority of the country’s gold.
According to the federation, most mining inputs are purchased in US dollars, making it difficult for miners to effectively use the local currency portion within their production processes.
ZMF also cautioned that enforcing the policy could have negative side effects, such as discouraging deliveries through official channels and encouraging side marketing, as miners try to retain access to foreign currency.
The development reflects the growing economic influence of small-scale miners, who contribute around 75% of Zimbabwe’s gold output and play a key role in generating foreign currency inflows.
Despite suspending the measure, the RBZ maintained its overall monetary policy stance, pointing to ongoing economic stability. Governor John Mushayavanhu noted that annual inflation has continued to decline, falling from 4.1% in January 2026 to 3.35% in February, with expectations of dropping below 2% in March.
The MPC attributed this stability to strong economic performance and increased foreign currency inflows, which totalled approximately US$3.35 billion in the first two months of 2026, largely driven by mining exports.
However, the committee warned of possible inflation risks arising from rising global oil prices linked to tensions in the Middle East, which could increase domestic fuel costs.
To manage inflation expectations, the MPC resolved to keep the policy rate unchanged, while maintaining statutory reserve requirements at 15% for savings and time deposits, and 30% for demand and call deposits.
The RBZ said it will continue to track both local and global economic trends and stands ready to adjust its policies to preserve low inflation and support sustained economic growth.
Looking ahead, the MPC emphasised its commitment to closely monitoring risks and implementing timely policy responses to maintain price stability and achieve growth targets of over 5% under the National Development Strategy 2.
