Zimbabwe losing millions to gold smuggling

Published: 10 June 2013

ZIMBABWE is losing over $50 million worth of gold every month to smuggling activities, according to the Minerals Marketing Corporation of Zimbabwe (MMCZ).

Owing to the inability of government to financially capacitate the central bank subsidiary, Fidelity Printers, to purchase gold at competitive prices, a large number of gold producers are increasingly opting for foreign markets, the Standard reported.

The MMCZ said it is working on a scheme with some partners and financiers from Shanghai and the Middle East with a view towards unveiling a multimillion dollar scheme that will see Fidelity Printers coming back on board and offering competitive prices for gold that is produced locally.

MMCZ director, Tendai Munyoro said the biggest problem with gold smuggling in the country was the absence of Fidelity Printers as a regulator and as a buyer.

"Producers of gold and barons have financed the purchase of gold illegally and smuggled it to South Africa where they get a better price from the rand refinery.

This gold is then sent over into Switzerland as an export," he said.

"We can't stop the smuggling of gold overnight but in the next 12 months, people will see the advantages of selling gold locally," said Munyoro.

Munyoro said MMCZ, Zimbabwe Revenue Authority (Zimra) and Zimbabwe National Roads Administration (Zinara) would in the next six months be unveiling ultra-modern weigh bridges, to be mounted at all points of entry and exit at the country's borders.

This, he said, would be a step towards curbing the rampant leakage of gold at the country's borders through illegal channels.
- standard