In a bid to curb the rampant smuggling of gold, Zimbabwe’s sole authorized buyer of gold, Fidelity Gold Refinery, is set to introduce a gold-tracing system. The initiative, announced by General Manager Peter Magaramombe, will commence on September 30.
The system will enable real-time monitoring of gold production, from bullion weighing to delivery to FGR, and subsequent tracing to the market. This move is aimed at tackling the significant losses Zimbabwe incurs annually due to gold smuggling, estimated at $1.5 billion by the International Crisis Group.
Despite previous allegations of government involvement in gold smuggling, Harare authorities have denied any wrongdoing. The introduction of the gold-tracing system demonstrates the country’s commitment to transparency and accountability in the gold industry.
Zimbabwe aims to produce 40 tons of gold this year, according to Mines Minister Winston Chitando. While this target is ambitious, the introduction of the gold-tracing system is a crucial step towards achieving it. In 2023, the country produced 30.1 tons of gold, a decline from the record 35.3 tons produced the previous year.
The gold-tracing system is a positive development for Zimbabwe’s gold industry, and its successful implementation is crucial for the country’s economic growth.
