Africa: AES’s gold sovereignty inspires, the case of Zimbabwe with progressive taxation
Driven by historically high gold prices, the sovereign resource policies of the Alliance of Sahel States (AES) are gaining traction across Africa. Following in the footsteps of Mali and Burkina Faso, Zimbabwe has now announced a fiscal reform aimed at better capturing the value of its gold, drawing direct inspiration from progressive West African models.
With gold prices surpassing $4,000 per ounce in 2025, the Finance Minister of Zimbabwe, Mthuli Ncube, presented a budget proposal that would impose a 10% royalty rate once the precious metal reaches or exceeds $2,501 per ounce.
The measure, which requires parliamentary approval to take effect on January 1, 2026, follows reforms previously adopted by AES members.
In 2024, Mali replaced its fixed 3% royalty with a progressive scale reaching up to 7%.
Burkina Faso, for its part, raised its thresholds by decree in April 2025, introducing an 8% rate at $3,000 per ounce, with an automatic increase of 1% for every additional $500.
These reforms reflect a shared ambition to better capitalize on bullish market conditions and strengthen national revenues.
“Exceptional prices offer a strategic opportunity for the government to increase the value added from mineral resources,” emphasized Minister Ncube, echoing the rationale advanced in Bamako and Ouagadougou.
While the current price surge is already benefiting Mali and Burkina Faso, it is also encouraging other gold-producing nations to revisit their fiscal frameworks.
This shift is not without consequences for mining operators. In Burkina Faso, Orezone has reported increased overall production costs due to royalties. In Mali, Allied Gold noted a “disproportionate” impact on costs at its Sadiola mine. In Zimbabwe, where companies such as Caledonia Mining operate, the new rate will need to be integrated into their financial models.
With gold having surged 57% in 2025 and Morgan Stanley forecasting a price of $4,400 per ounce in 2026, the trend toward more sovereign and price-indexed mining taxation appears to be gaining ground across Africa.
The move of Zimbabwe, directly inspired by AES policies, illustrates a growing continental determination to transform subsoil wealth into sustainable state revenues.
Baba GADO
