The growing willingness of fuel companies to accept Zimbabwe Gold (ZiG) for wholesale purchases is an encouraging development that demonstrates increasing confidence in the local currency.
It is a positive step that deserves recognition, but the companies must now go further and extend the same facility to ordinary motorists buying fuel at service stations.
Reserve Bank of Zimbabwe (RBZ) Deputy Governor Dr Innocent Matshe told delegates attending the 2027 Pre-Budget Seminar in Bulawayo that some petroleum companies were accepting ZiG for bulk fuel purchases to meet their statutory obligations.
“So, what they have opted to do in the interim is to sell it in wholesale in ZiG,” Dr Matshe said.
The development is commendable because it demonstrates that fuel companies recognise the usefulness of the domestic currency in their operations.
However, we believe there is no compelling reason why a currency considered acceptable for wholesale transactions should remain unacceptable at retail pumps.
Fuel companies should recognise that the economic environment has improved considerably, creating favourable conditions for wider use of ZiG.
The local currency has maintained relative stability against the United States dollar, while inflation has declined dramatically from the levels that previously undermined confidence in domestic transactions.
Annual ZiG inflation stood at just 4.3% in October, while month-on-month inflation was 0.2%, according to the Zimbabwe National Statistics Agency. Such low inflation provides greater predictability for businesses planning purchases, managing costs and setting prices.
The country has also strengthened its foreign currency position. Foreign currency inflows reached $15.9bn during the first nine months of 2026, compared with $11.9bn during the corresponding period last year, while reserves reached approximately $2bn in September.
These developments demonstrate the growing availability of foreign currency in the economy and should help ease concerns about financing fuel imports, although companies must still have reliable access to foreign exchange when required.
We acknowledge that petroleum products are largely imported and that companies need foreign currency to replenish stocks. However, accepting a reasonable proportion of retail payments in ZiG would not necessarily undermine their ability to meet those obligations.
Indeed, selling fuel in ZiG would enable companies to generate the local currency they require for taxes and other domestic expenses without repeatedly converting foreign currency.
Dr Matshe explained the current motivation, saying: “If they are receiving, you know, payments in US dollars and they are required to pay QPD in ZiG, they need to find a way of generating that ZiG.”
That logic should apply equally to retail transactions.
Consumers who earn their salaries in ZiG deserve the convenience of purchasing fuel directly in their domestic currency without first exchanging it for dollars.
The Government and RBZ should continue engaging fuel companies to encourage a practical transition towards dual-currency retail sales.
Currency confidence grows through everyday use. Fuel companies have taken a welcome first step by accepting ZiG in bulk transactions. They should now demonstrate the same confidence at the pumps.
