Zimbabwe’s Gold Boom Shadows Crisis of Smuggling and Violence, Analysts Warn


Health and Environment

MASVINGO – Zimbabwe’s gold sector is posting record production figures, but a new report warns that the impressive rally is masking a deepening crisis of violence, environmental degradation, and massive illicit financial flows.

Gold output has surged dramatically this year, driven by high global prices. Official figures show production rose to 24.3 metric tons in the first seven months of 2025, a 40% increase from the same period last year. This puts the country on track to potentially surpass 40 metric tons by year-end, signaling a powerful rebound for a key economic sector.

However, this growth conceals severe fractures. According to the International Crisis Group, Zimbabwe is losing an estimated US$1.5 billion annually to gold smuggling. Furthermore, artisanal and politically connected mining operations are fuelling lawlessness and ecological disaster in areas like Penhalonga, Mazowe, and Shurugwi.

The situation at Redwing Mine in Penhalonga, operated by Better Brands Mining Company, has drawn particular scrutiny. The company is owned by Zanu-PF legislator Scott Sakupwanya.

In a hard-hitting assessment, Centre for Natural Resource Governance (CNRG) Executive Director Mr. Farai Maguwu described the operation as a national threat.

“The situation in Penhalonga has seriously degenerated and needs an urgent solution,” Maguwu told Zim GBC.

“The government needs a proper investor to take over. The Better Brands model is a security threat and environmental disaster.”

He pointed to violent clashes involving armed gangs, extortion rackets, and haphazard mining that operates outside the oversight of the Ministry of Mines. Local monitors report at least five deaths per month in the area, with many accidents going unreported.

The environmental cost is also spiraling. Similar destruction is reported in Shurugwi, where the once-scenic Boterekwa mountain ranges are being ravaged by unchecked mining activities.

A CNRG report links these operations to broader political patronage networks, facilitating illicit financial flows estimated at US$1.9 billion annually. Critics argue that without addressing these governance failures, smuggling, and the human toll of unsafe mining, the sector’s impressive gains risk becoming another mirage.

Zim GBC News | Global News From An African Perspective©2025

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