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

Zimbabwe is capping government spending on its gold-buying incentive scheme at $300 million this year to reduce fiscal risks linked to fluctuations in gold prices and deliveries, according to a letter from top economic officials to the International Monetary Fund.

The government will review the program as part of the 2027 national budget to assess whether it remains financially sustainable and whether its scope should be adjusted.

The scheme has been used to support gold purchases, helping underpin confidence in the Zimbabwe Gold (Zig), a gold-backed currency introduced in 2024. The policy is part of broader efforts to stabilize the currency and restore confidence in Zimbabwe's financial system.