Online Reporter
Debra Matabvu, Senior Zimpapers Reporter
GOVERNMENT has started progressively moving towards paying all contractors in the Zimbabwe Gold (ZiG) as part of a wider strategy to promote the use of the domestic currency and lay the foundation for the country to operate under a mono-currency by 2030.
The policy shift, contained in National Development Strategy 2 (NDS2), mandates all tiers of the Government to start increasingly transacting in ZiG when procuring goods and services, including payments to suppliers, service providers and contractors, to stimulate broader acceptance of the unit.
President Mnangagwa launched the mid-term development plan last week.
The policy forms part of measures designed to increase the circulation of the structured currency in the economy, boost confidence and gradually reduce reliance on foreign currencies in domestic transactions.
Presently, the Government is paying its contractors using a complex multi-currency framework that involves a mix of ZiG, United States Dollars, and in some cases, financial instruments such as Treasury Bills for long-overdue payments.
Authorities say usage of the ZiG on official payment systems has already risen from 26 percent when the currency was first introduced in April 2025 to above 40 percent in June this year.
“The economy has witnessed improved confidence in the local currency since the introduction of ZiG,” reads the document.
“In this regard, NDS2 contains measures to enhance the wider use of ZiG in the economy, supported by strategic interventions and initiatives aimed at creating demand for ZiG.
“Government, through all its tiers, will take a leading role in transacting in ZiG for the procurement of goods and services.
“By prioritising the use of ZiG in all Government payments, including supplier contracts and service fees, the public sector will significantly enhance the currency’s circulation and acceptance across all sectors of the economy.
“This will enhance confidence in the local currency, encouraging the public and private sector to adopt ZiG in their commercial transactions and reduce reliance on conducting domestic payments in foreign currencies.”
As part of the transition, Government intends to adjust the quality and denominations of banknotes, and increase the amount of physical notes and coins in circulation.
“Making ZiG more accessible and attractive for all domestic financial transactions will also be accompanied by printing of improved quality ZiG banknotes, with enhanced security features and a broader range of denominations to maintain public confidence in the national currency,” reads the document.
“Pursuant to the above, the proportion of ZiG notes and coins in issue will be gradually increased to around regional benchmarks of about 5 percent of money supply in order to support growing use of the local currency in transactions in the economy.”
The reforms are also anchored on strengthened currency backing.
According to NDS2, foreign currency reserves undergirding the ZiG rose from US$276 million in April 2024 to above US$900 million by September 2025, providing almost four-times cover of reserve money and full cover of broad money.
“The introduction of the structured currency, the Zimbabwe Gold (ZiG), in April 2024 was a pivotal reform in stabilising the monetary system.
“The ZiG, anchored on foreign currency reserves and precious minerals mainly gold, provided a credible and transparent mechanism for currency management and inflation control.
“By September 2025, foreign currency reserves backing the ZiG had increased from about US$276 million in April 2024 to over US$900 million. This represented nearly four times the cover of local currency reserve money (ZiG 4,7 billion) and fully covered local currency broad money (ZiG 16,8 billion).
“The stability of ZiG improved market confidence and contributed to price stability.”
Authorities also intend to complement the shift with measures that reduce digital-payment charges, enhance banking confidence and expand financial inclusion in order to support wider adoption of the ZiG.
