South Africa is pressing Zimbabwe to repay more than US$228 million owed to platinum group metals (PGM) producers under the country’s foreign currency retention system. Speaking to the media recently, South African Mineral and Petroleum Resources Minister Gwede Mantashe said his government was engaging Zimbabwe over the funds deducted from PGM producers and retained in […]
South Africa is pressing Zimbabwe to repay more than US$228 million owed to platinum group metals (PGM) producers under the country’s foreign currency retention system.
Speaking to the media recently, South African Mineral and Petroleum Resources Minister Gwede Mantashe said his government was engaging Zimbabwe over the funds deducted from PGM producers and retained in local currency (ZiG) instead of being paid back to the mining companies.
“What I’m discussing with the Zimbabwean government is the payment of 30% that is deducted in local currency and never given back to PGM producers. I want them to pay back the money,” Mantashe said.
Zimbabwe requires exporters to surrender 30% of their export proceeds through government channels, with the funds converted into local currency.
However, delays in reimbursing exporters have left mining companies with substantial outstanding balances.
The issue has increasingly raised concerns among South African mining companies with major investments in Zimbabwe’s platinum sector.
Speaking at a mining conference in Victoria Falls in June, Platinum Producers’ Association chairman Alex Mhembere said PGM producers were owed more than US$228 million as of May 2026.
The Zimbabwean government says the foreign currency retention policy is necessary to secure foreign exchange for critical imports, capital projects and servicing external obligations.
However, for mining companies, delayed payments have put pressure on cash flow, particularly because a significant portion of their export earnings is converted into local currency.
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