HARARE — In a bid to boost gold deliveries to Fidelity Printers and Refinery and curtail rampant smuggling, authorities in 2020 introduced a 5% delivery incentive aimed at increasing output by small-scale miners — and the results are beginning to show.
The incentive was initially offered on deliveries of at least 20 kilograms of gold per month, added on top of the prevailing Fidelity price. Before this intervention, incentive schemes were largely tailored to large-scale producers such as Zimbabwean businessman Scott MacMillan and Kenyan national Kamlesh Pattni — also known as Pastor Paul — who operates locally.
When the incentive was opened up to all players in 2020 companies like Betterbrands immediately started reaping rewards as they were already delivering tonnes of gold to FPR a year.
Recently, the 5 percent incentive was extended to small scale producers and artisanal miners who can manage at least 500 grammes per calendar month.
A top office at FPR said: “I think there is a huge misinformation campaign against the 5 percent incentive paid to gold deliveries at Fidelity. It’s a simple move to accumulate as much gold as possible from both big producers and small scale miners. Now small scale miners are bringing in up to 40 tonnes a year. The incentive was introduced way back in 2020.
“Initially it was 20 kg per calendar month and one would get the incentive. As it is not easy for most producers to meet the target, quite a number decided to work with for instance Betterbrands where they would work with Betterbrands and sell their gold through them and that way they would enjoy the incentive.
“Now there is misleading information that only Betterbrands benefit from that deal. Actually any gold producer minus the big companies benefit. And now the threshold has been reduced to 500grammes per calandar month.
“The scheme is for everyone and all are supposed to benefit. What we need is more and more gold at Fidelity and this incentive has worked wonders. It’s not a crime that a company like Betterbrands is working with many other producers, they are actually doing well.”
The incentive has resulted in more compliance, transparency, and responsible mining practices as well as curtailing smuggling out of gold.
Through large scale accumulation of gold, Betterbrands has reportedly brought in billions of US dollars into the country as they deliver more tonnes of gold than any other company in the country.
ZMF President Henrietta Rushwaya recently welcomed the decision to include artisanal miners and said the incentive would encourage increased production, contributing to economic growth and boosting exports.
She said:”It is a very welcome and positive move indeed, especially after we presented the request to Fidelity on the need to differentiate incentives between producers and buyers at our strategic workshop,” Rushwaya stated.
“Coming up with such incentives encourages the ASM sector to produce more gold, thereby contributing significantly to economic growth. Such moves will make us more competitive in terms of production, thereby increasing our export receipts.”
“With such a noble gesture, reaching an annual 40-ton production target in 2025 by the small-scale mining sector will be easily attainable.”
