ZIMBABWE ESTABLISHES GOLD TRADE ENFORCEMENT UNIT (GTEU) UNDER FIDELITY GOLD REFINERY (PVT) LTD (FIDELITY) OVERSIGHT
Introduction
Fidelity Gold Refinery (Private) Limited (Fidelity) is the designated National Gold Refinery following the amendment of the Gold Trade Act [Chapter 21:03], through Section 48 of the Finance Act (No. 2) of 2024. Subsequently, the Gold Trade Act was amended through Part IIIA to establish the Gold Trade Enforcement Unit (GTEU) which will operate under Fidelity’s oversight.
Establishment of the GTEU
In terms of the amendment, the Managing Director of the National Gold Refinery appoints the Head of the Unit. The GTEU comprises of Fidelity staff and the Zimbabwe Republic Police (ZRP) officers appointed by the Police Commissioner-General. These are certified as Gold Trade Enforcement Officers by the Minister of Finance and Economic Development.
Each certified Gold Trade Enforcement Officer is issued an official certificate signed by or on behalf of the Minister responsible for Finance. GTEU officers must present the certificate upon demand by any person affected by the exercise of their powers.
Functions and Powers of the GTEU
The Gold Trade Enforcement Unit has been entrusted with a critical and multi-faceted mandate to safeguard Zimbabwe’s gold economy and ensure adherence to established regulations. Its core functions include assisting miners in preventing the theft of gold from mining locations, thereby protecting their operations and output, preventing the sale of gold to any entity or individual other than a holder of a gold dealing license or a person explicitly authorized under the Gold Trade Act, ensuring all gold trade is channeled through legitimate avenues, preventing the smuggling of gold outside Zimbabwe’s borders thereby protecting the nation’s strategic reserves and foreign exchange earnings and acting generally to safeguard Zimbabwe’s gold resources for the collective public benefit, reinforcing transparency and accountability in the sector.
The GTEU is empowered to enter any mining location for the purpose of examining security systems in place; inspecting whether mining or prospecting is being conducted at the site taking samples for assay; examining books, accounts and any other records, including making copies where necessary; accessing and examining any computer, Universal Serial Bus (USB), or other information storage device, requiring information in unencrypted, machine-readable format and determining whether provisions of the Act are being carried out.
This comprehensive and proactive approach aims to ensure effective compliance with the Gold Trade Act, fostering a more secure, transparent and regulated gold trading environment that benefits all legitimate stakeholders.
Measures to Curb Illegal Gold Trading in Zimbabwe
To curb illegal gold trading in Zimbabwe, Fidelity Gold Refinery has implemented a comprehensive set of measures aimed at ensuring that all gold produced is formally accounted for and delivered through legal channels.
Among these is Elution Monitoring, where Fidelity’s internal security oversee gold production at elution plants to ensure delivery to Fidelity. Additionally, there is a Gold Mobilization Technical Taskforce which works to ensure responsible mining and compliance in the ASM sector.
Fidelity operates 20 gold buying centres across all mining provinces, including Harare, Mutare, Gweru, Bulawayo and others. In underserved areas, mobile gold buying units and agents are deployed, ensuring miners can access services safely and avoid the risks associated with long-distance travel. In addition, Fidelity is constructing one-stop gold service centers around Zimbabwe, making it easier for Artisanal and Small-scale Gold Miners to transact under one roof. Some of the services that will be provided at these one-stop service centers are assay services, chemical supply services, elution services and gold buying services.
Fidelity has also introduced a Gold Traceability System that tracks gold from production to the international market, enhancing transparency and ensuring compliance with the June 2023 legislation on responsible sourcing. This mine-to-market tracking framework reinforces the integrity of Zimbabwe’s gold supply chain.
To encourage formal trading, Fidelity guarantees timely payments and competitive pricing, benchmarking its rates against the London Bullion Market Association (LBMA). This strategy offers miners an internationally aligned value proposition for their gold, incentivizing them to operate through official channels and further supporting efforts to eliminate illicit gold trading.
Conclusion
The establishment of the Gold Trade Enforcement Unit marks a positive inroad in upholding the integrity of the gold trading industry. Fidelity Gold Refinery, being at the center of this development, is expected to unlock the benefits accruing from this legislative amendment. Through the GTEU, Fidelity aims to establish a robust framework around national gold mobilization, ensuring that every gram contributes transparently and legitimately to Zimbabwe’s economic prosperity and security.
For more information contact:
The General Manager
Fidelity Gold Refinery (Private) Limited
Peter Magaramombe
pmagaramombe@fpr.co.zw
+263 773 542 723