Zimbabwe will cap government spending on its gold-buying incentive scheme at $300 million through the end of 2026, a move aimed at containing fiscal risks as the country weighs the rising cost of backing its bullion-backed currency.

Finance Minister Mthuli Ncube and Central Bank Governor John Mushayavanhu disclosed the spending limit in a letter of intent to the International Monetary Fund, included in the country's Staff-Monitored Programme report released on Saturday.

“To contain fiscal risks related to gold-price movements and gold deliveries in 2026, Government will limit total spending on the gold incentive scheme through end-2026 to $300 million,” the two officials wrote.

The scheme, which supports gold purchases to underpin confidence in the Zimbabwe Gold (ZiG) currency introduced in April 2024, will be reviewed during preparations for the 2027 national budget. Authorities will assess whether the program remains financially sustainable and whether its scope should be adjusted.

Zimbabwe has been excluded from international capital markets since 1999, when it defaulted on debts owed to the World Bank, the Paris Club and the African Development Bank. The spending cap comes as the country works to rebuild relationships with international lenders after securing a 10-month IMF staff-monitored programme in February — a critical step toward addressing billions of dollars in outstanding debt.

Gold production has continued to strengthen despite the spending restraint. Zimbabwe produced 21.4 metric tons of gold in the first half of 2026, up from 20.3 metric tons during the same period last year. Gold export earnings surged 69% to $3.1 billion, according to central bank data.

The IMF projects Zimbabwe's economy will grow by 5% this year and 4.2% in 2027. The country is scheduled to present its 2027 national budget in November.

The decision to cap spending comes as Zimbabwe's gold sector expands while authorities seek to balance currency stability against the rising fiscal cost of supporting the industry.