The Struggle Between the Ministry and RBZ Over Platinum Miners’ Payments
The ongoing conflict between Zimbabwe’s Ministry of Finance, Economic Development and Investment Promotion and the Reserve Bank of Zimbabwe (RBZ) has raised concerns over the timely payment of local currency to platinum exporters. This issue stems from a US$400 million loan from Afreximbank, which has placed significant pressure on the government to meet its obligations, leading to delays in payments to miners.
Under the export retention scheme, platinum miners are required to surrender 30% of their earnings in exchange for the Zimbabwe Gold (ZiG), a gold-backed local currency. However, since January, these payments have stalled, causing frustration among producers of platinum group metals (PGMs), one of the country’s most important foreign currency earners.
Senior central bank sources have indicated that the Ministry and the RBZ are now at odds over the arrears, with tensions escalating as platinum exporters continue to be left without settlement despite contributing to national revenue.
Despite these tensions, senior officials from the Finance ministry have denied any rift with the central bank. One Treasury official stated:
“I cannot say that we are clashing. In meetings with the Reserve Bank, everyone is in agreement that we want a stable local currency. No one wants to see the ZiG crumble.”
However, the main challenge for the ministry lies in servicing the Afreximbank loan, which has put immense pressure on the budget and delayed payments to platinum producers.
Loan Terms and Their Impact
The Afreximbank loan, secured in 2023, was intended to plug budget deficits and finance trade-related infrastructure. The terms of the loan are particularly steep, including a 10,216% interest rate, a 2.75% arrangement fee, a 0.5% commitment fee, and a 12,216% default rate. With no grace period, monthly repayments will continue until 2029.
According to current regulations, exporters must surrender 30% of their earnings, which is paid in the form of ZiG. A portion of this is directed toward servicing the Afreximbank loan. Additionally, 35% of Zimplats’ export proceeds are used to repay the loan under RBZ management.
Central bank sources have confirmed that the Finance ministry has been urging the RBZ to step in, but Governor John Mushayavanhu has remained firm, insisting that the central bank will not return to quasi-fiscal activities that previously destabilized the economy.
“The central bank is no longer in the business of funding government expenditure or settling external arrears on behalf of Treasury. This issue of PGM payments has nothing to do with us, Treasury must deal with it,” an RBZ insider said.
Token Payments and Broader Implications
Some token payments were reportedly made by Treasury in June to a few exporters, allegedly to quell discontent. However, these were described as “a drop in the ocean” given the scale of the problem.
For decades, the RBZ acted as a de facto government purse, monetizing deficits and fueling inflation. However, Mushayavanhu has drawn a line, refusing to fund quasi-fiscal operations and prioritizing the stability of the ZiG.
Zimbabwe exported 14,164 tonnes of PGM matte worth US$583.9 million and 33,705 tonnes of concentrate worth US$106.1 million in the first half of 2025, according to Minerals Marketing Corporation of Zimbabwe data.
By December 2023, Zimbabwe had already pledged a share of its platinum revenues to debt service, leaving little fiscal space. With external debt at US$12.7 billion and total public debt at US$21.5 billion in the first quarter of 2025, the country remains locked out of concessional funding from global lenders, making PGMs, gold, and tobacco critical financial lifelines.
RBZ’s Perspective
The RBZ explained that exporters’ 30% surrender requirements are allocated as follows: 17.5% to the RBZ, with 12.5% used for foreign exchange market intervention and 5% for reserve build-up, while 12.5% goes to Treasury for external debt servicing.
Mushayavanhu stated that the RBZ has been promptly settling the ZiG portion for the 17.5% export requirements surrendered to the bank. He also noted that the government has been settling the part of the exports surrendered to them.
“In line with the demand for local currency by exporters, government often enters into bilateral arrangements with exporters to keep the ZiG portion and only release it as and when required. In addition, some exporters also opt to put their ZiG portion in the USD facility to keep value and access it when required.”
He emphasized that the government has strived to provide the ZiG equivalent for the exports surrendered and that where cash-flows are not permitting, the government engages exporters in negotiated arrangements beneficial for both parties.
Moving Forward
Mushayavanhu highlighted the need for close coordination between fiscal and monetary policies to ensure sound macroeconomic management. He stressed that the central bank recognizes the mining sector’s pivotal role in generating foreign currency and driving sustainable economic growth.
“Both fiscal and monetary policies are designed to create an enabling and conducive environment to attract investment in the various sectors of the economy, including the mining sector.”
He further noted that the central bank acknowledges the importance of finding workable solutions to challenges faced by the industry and the economy at large.
The standoff risks unsettling Zimbabwe’s mining industry, which accounts for more than 70% of foreign currency earnings. As the situation unfolds, the collaboration between the Ministry and the RBZ will be crucial in ensuring stability and continued economic growth.
