Zimbabwe Caps Gold-Buying Incentives at $300 Million Amid Fiscal Risk Concerns

Zimbabwe's government has capped its spending on gold-buying incentives at $300 million through 2026. The move aims to reduce fiscal risks linked to fluctuations in gold prices and deliveries, according to Finance Minister Mthuli Ncube and Central Bank Governor John Mushayavanhu. The scheme supports the Zimbabwe Gold (Zig) currency, which was introduced in 2024 as part of broader efforts to stabilize the country's financial system.

The government has used the gold incentive program to support gold purchases, helping underpin confidence in the Zig. However, the spending review comes as Zimbabwe works to rebuild its relationship with international lenders after being excluded from capital markets since 1999.