Business Report
By Innocent Sibonginkosi Ncube | Zim GBC News Editor
Bulawayo, Zimbabwe – The Reserve Bank of Zimbabwe (RBZ) has intensified its push to replace the multi-currency system with the domestic Zimbabwe Gold (ZiG) currency by 2030, announcing plans for a detailed “de-dollarisation road map” within the upcoming National Development Strategy 2 (NDS2).
This ambitious move, aimed at regaining monetary control, faces scrutiny against a backdrop of failed local currencies and an informal sector deeply entrenched in US dollars.
Governor Dr. John Mushayavanhu, unveiling the plan in the 2025 Mid-Term Monetary Policy Review and reinforcing it at a stakeholders’ meeting, stated:
“The road map will crystalise in the National Development Strategy 2, under the stewardship of the RBZ… While the policy’s ultimate goal is clear, its design will undoubtedly encapsulate the need to maintain current stability, preserve foreign currency accounts and respect existing USD-denominated contracts.” He emphasized the critical need for a domestic currency:
“This economy is affected by low liquidity, especially in US dollars, which we cannot control at all. De-dollarisation is the best route available to give us full control over our monetary policy and drive economic growth.”
Learning from Past Failures, Facing Present Realities
The RBZ’s confidence in ZiG, introduced in April 2024 to replace the inflation-ravaged Zimbabwe dollar, contrasts sharply with the history of local currencies since the collapse of the original Zimbabwe dollar during hyperinflation. The multi-currency system, adopted in 2009 as a stabiliser, was followed by failed attempts to reintroduce local tender via bond notes (2016) and the RTGS dollar (2019), both succumbing to rapid devaluation and loss of public trust.
Compounding the challenge is the widespread rejection of local currency by the vast informal sector, estimated to constitute over 60% of the economy. USD remains the preferred medium for most informal transactions, from cross-border trade to local street vending, highlighting deep-seated scepticism towards domestic legal tender.
Stakeholder Support Tempered by Caution and Demands
While industry leaders broadly support the principle of de-dollarisation, the 2030 deadline and lack of concrete safeguards have sparked calls for clarity and caution:
- Timeline & Scale Concerns: WestProp CEO Ken Sharpe noted,
“ZiG is only about a small percentage of the money in circulation… we need to consider realistic timelines that do not distort the current economic trajectory.” Investment analyst Tafara Mtutu pointed to practical hurdles: “There are a lot of grey areas that need to be clarified,” citing fuel pricing, rentals, and the dominance of USD in informal channels. - Safeguarding Savings & Contracts: Stakeholders expressed acute anxiety over foreign currency deposits post-2030. Africa Roundtable chair Oswell Binha urged:
“We need fine-tuning to eliminate exchange rate distortions without jeopardising growth… Abrupt policy shifts could undermine investor confidence.” Economist Gladys Shumbambiri-Mutsopotsi stressed the need for “enforceable guarantees for foreign-currency accounts” and “policy certainty backed by legal frameworks.”
- Linking to Production & Localisation: Buy Zimbabwe GM Alois Burutsa linked de-dollarisation to government policy:
“Local procurement is a key factor in reducing imports and making it easier to de-dollarise.” Investment analyst Malone Gwadu added,
“The road map… must be gradual and consistent, with enablers such as tax settlement in ZiG… [and] alignment of liquidity availability with production.”
He emphasised “ramp[ing] up productive capacity across key sectors to defend ZiG.”
- Blueprint for Success: Shumbambiri-Mutsopotsi outlined essential elements: transparent processes, inclusive consultations (especially with SMEs and women), and clear post-2030 business guidance. Gwadu lauded the RBZ chairing the NDS2 Macroeconomic Stability working group as “a noble direction.”
The Balancing Act Ahead
The RBZ, with Deputy Governor Dr. Innocent Matshe reiterating the “2030 deadline,” faces the monumental task of convincing a wary public and business sector that ZiG represents a sustainable future, unlike its predecessors, while simultaneously navigating the entrenched USD dominance in the informal economy.
The success of the de-dollarisation roadmap hinges on its ability to deliver “legally anchored” safeguards, maintain current stability, and rebuild trust eroded by past currency failures.
Follow Zim GBC News for the latest:
🌐 Website: www.zimgbcnews.co.zw
🐦 X (Twitter): @ZimGbc
📸 Instagram: @ZimGBCNews
👍 Facebook: Zim GBC News
▶️ YouTube: Zim GBC News
📱 Telegram: t.me/ZimGBCNews
Zim GBC News | Global News From an African Perspective©2025