·         Zimbabwe gold smuggling exposed

·         High ranking government officials fingered

·         Economic deterioration partly attributed to gold smuggling

Harare - In what could be a twist of fate, an investigative unit under Aljazeera uncovered atrocities being done by the government of Zimbabwe in the gold industry, in a documentary that was aired on the 23^rd of March, 2023. In the first episode of the docuseries, high levels of gold smuggling were exposed, allegedly involving high ranking government officials and institutions that include the Central Bank. However, for a layman, it is imperative to understand what gold smuggling entails and mean for the entire country.

Gold smuggling is the illegal transportation of gold across borders, without proper documentation or payment of taxes and duties. This practice has numerous negative effects on the overall economy of the country, its security, as well as social fabric.

One of the most significant impacts of gold smuggling is its adverse effect on a country's economy. Gold smuggling leads to a loss of revenue for the government as smugglers do not pay taxes or duties on their goods. This results in a reduction in the government's fiscus and subsequently its ability to provide essential services such as healthcare, education, and infrastructure development. Moreover, it also creates an unfair competition for legitimate businesses that pay taxes and follow regulations.

Gold smuggling also has severe implications for Zimbabwe’s security. As was aired in the docuseries, the smugglers often use illegal means to transport gold across borders, including bribery, corruption, and forgery. These activities can destabilize the political environment and create an atmosphere of lawlessness that can inspire other criminal activities such as drug trafficking and terrorism.

Furthermore, gold smuggling has social implications as well as it often involves exploitation of vulnerable populations such as young girls who are forced by dire situations to be involved in the crime, as has been the case in Zimbabwe where a young university student was once apprehended at the airport. This practice perpetuates poverty and inequality in society.

In addition to these negative effects, gold smuggling also contributes to environmental degradation. Illegal mining practices used by smugglers often involve the use of toxic chemicals such as mercury that pollute water sources and harm wildlife.

To combat gold smuggling effectively, governments must take measures to strengthen their border controls and increase penalties for those caught engaging in this illegal activity. However, it becomes tricky when high ranking government officials, who are typically above the law in reality, are involved in the smuggling. The probability of reforms in such a circumstance will be very low, and this could lead to intervention by international organizations in developing policies that promote responsible mining practices and reduce demand for illegally sourced gold, or in some cases to entirely sanction the gold trade from Zimbabwe along with Fidelity, and flag the Reserve Bank of Zimbabwe.

In conclusion, gold smuggling is a serious issue that has been negatively affecting Zimbabwe for decades now. Its negative impact on the economy continues to be felt as the failure of the ZWL could have long been averted with the amount of gold that has been smuggled. The negative effect on Zimbabwe’s security, social fabric, and environment also cannot be overstated.

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