Mineral economistLyman Mlambohas issued a stark warning over Zimbabwe’s 30% foreign currency retention policy and the government’s delayed settlement of more than US$609 million owed to platinum group metal (PGM) producers for the first half of 2025

Mineral economistLyman Mlambohas issued a stark warning over Zimbabwe’s 30% foreign currency retention policy and the government’s delayed settlement of more than US$609 million owed to platinum group metal (PGM) producers for the first half of 2025 The combined effect, he says, risks stifling growth in one of the country’s most critical sectors and weakening Zimbabwe’s standing as an investment destination The Reserve Bank of Zimbabwe (RBZ) mandates that exporters surrender 30% of their foreign currency earnings, known as retentions, in exchange for payment in local currency at an official exchange rate often significantly lower than market rates This policy aims to bolster local currency liquidity but has instead resulted in a massive backlog of payments to miners, particularly in the PGM sector PGM mining in Zimbabwe accounts for a substantial share of the country’s foreign currency earnings, supporting thousands of jobs and generating export revenues critical to the economy However, the sector is capital-intensive, requiring continuous imports of mining equipment, spare parts, chemicals, and specialist technical services Mlambo emphasised the disconnect between government policy and industry realities: “In the first place, the forex retention level is too high considering that the PGM industry (like other mining sub-sectors) is capital intensive and imports most of its capital equipment, spares, consumables such as chemicals, and some technical expertise The industry is busy trying to establish base metal and precious metal refineries in line with government’s beneficiation and value addition thrust Thus, holding such a huge cumulative amount is punitive to the PGM industry and self-defeating for the government’s transformative industrial agenda.” Zimbabwe’s beneficiation push aims to move mining beyond raw export by processing minerals locally, increasing value addition, and generating more jobs Yet, Mlambo argues that withholding retentions undercuts these ambitions, restricting the cash flow necessary to invest in such downstream projects Source: Mining Zimbabwe All Zim News is a central hub for all things Zimbabwean, curating news from across the country so no story is missed Alongside aggregation, our team of nationwide reporters provides real-time, on-the-ground coverage Stay informed and connected — reach us at admin@allzimnews.com. Source: Miningzimbabwe