Zimbabwe limits gold-buying incentives to $300 million as it weighs the cost of backing its currency

Zimbabwe will cap government spending on its gold-buying incentive scheme at $300 million this year and review the program as part of the 2027 national budget.

Zimbabwe will cap government spending on its gold-buying incentive scheme at $300 million this year and review the program as part of the 2027 national budget, according to a letter from the country’s top economic officials to the International Monetary Fund.

Finance Minister Mthuli Ncube and Central Bank Governor John Mushayavanhu said the spending limit is intended to reduce fiscal risks linked to fluctuations in gold prices and deliveries. The government will cap total spending on the scheme through the end of 2026 at $300 million, Bloomberg reported.

Zimbabwe will also assess whether the gold incentive program remains financially sustainable and whether its scope should be adjusted as it prepares the 2027 budget.

The government has used the scheme to support gold purchases, helping underpin confidence in the Zig, or Zimbabwe Gold, the gold-backed currency introduced in 2024. The policy is part of broader efforts to stabilise the currency and restore confidence in Zimbabwe’s financial system.