Online Reporter
Tapiwanashe Mangwiro
THE Reserve Bank of Zimbabwe (RBZ) has redoubled its efforts to fully transition from the current multi-currency regime to a domestic mono-currency system by 2030 in an orderly manner.
To achieve this goal, the central bank plans to develop a “de-dollarisation road map” in the upcoming National Development Strategy 2 (NDS2), which will replace the current NDS1.
NDS1 was the initial five-year medium-term plan designed to guide the development trajectory towards the realisation of Zimbabwe’s Vision 2030 of becoming an upper middle-income society.
Zimbabwe needs a domestic mono-currency, like Zimbabwe Gold (ZiG), to regain control over its monetary policy, manage inflation and foster long-term economic planning. While a multi-currency system, like the one currently being used, can offer short-term stability, it limits the Government’s ability to influence its economy and can hinder export competitiveness.
The planned currency road map announcement in the central bank’s 2025 Mid-Term Monetary Policy Review and reinforced at a stakeholders’ breakfast meeting in Harare on Friday, comes amid growing calls from industry leaders for greater clarity and assurances to safeguard economic stability during the transition. This comes after Zimbabwe adopted ZiG in April last year to replace the Zimbabwe dollar, which had become susceptible to frequent bouts of high inflation, which destabilised the economy.
Zimbabwe’s economy has experienced increased stability since the new currency was introduced, with monthly inflation remaining largely low and within policy targets, while the parallel market rate of the now-stable ZiG has narrowed considerably. This has significantly improved business and public confidence, allowing for more predictable planning and creating conditions for sustainable growth.
Treasury has forecast Zimbabwe’s economy to grow by 6 percent this year, 4 percentage points faster than the predicted 2 percent expansion in 2024, when the EL Niño-induced drought weighed on agriculture, a key sector of the economy.
RBZ Governor Dr John Mushayavanhu emphasised in the Mid-Term Monetary Policy Review that “the road map will crystalise in the National Development Strategy 2, under the stewardship of the RBZ, which chairs the NDS2 Thematic Working Group on Macroeconomic Stability and Financial Deepening (MESFIND).”
“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.
“Consideration will always be made to ensure business continuity and certainty.”
Stakeholders have broadly welcomed the principle of de-dollarisation, but urged the RBZ to refine the timeline and implementation details.
“The RBZ underlined that there is no going back on that policy measure,” said WestProp founder and chief executive officer Mr Ken Sharpe earlier this year.
“But ZiG is only about a small percentage of the money in circulation, and we need to consider realistic timelines that do not distort the current economic trajectory.”
Once lauded as a stabilisation tool, the multi-currency regime, introduced in 2009 to tame hyperinflation, has since become a limiting factor to long-term planning.
US dollar-based contracts remain limited to 2030, while foreign-currency depositors are worried about the fate of their savings once the multi-currency system expires.
“Stakeholders relayed concerns about their foreign-currency deposits at the end of the multi-currency system in 2030,” the RBZ said in the 2025 Mid-Term Review, sparking demands for legally binding guarantees.
Africa Roundtable chairperson Mr Oswell Binha, responding to questions from this publication, was cautious.
“We are not opposed to a mono-currency regime,” he said.
“But we need fine-tuning to eliminate exchange rate distortions without jeopardising growth.”
He called for a consultative approach, warning that abrupt policy shifts could undermine investor confidence.
RBZ Deputy Governor Dr Innocent Matshe reiterated the 2030 deadline.
“This economy is affected by low liquidity, especially in US dollars, which we cannot control at all,” he said.
“De-dollarisation is the best route available to give us full control over our monetary policy and drive economic growth.”
General manager of Buy Zimbabwe, a local consumption advocacy, Mr Alois Burutsa, linked de-dollarisation to a broader thrust in President Mnangagwa’s administration.
“Local procurement is a key factor in reducing imports and making it easier to de-dollarise,” he said, noting that streamlined processes have already begun to favour domestic suppliers.
Mr Malone Gwadu, an investment analyst, praised RBZ’s disciplined approach.
“Chairing MESFIND in NDS2 is a noble direction,” he said.
“The road map lays the groundwork for sustainable development. It must be gradual and consistent, with enablers such as tax settlement in ZiG and the removal of foreign-currency bases for tax determination.”
Mr Gwadu emphasised the need to ramp up productive capacity across key sectors to defend ZiG, arguing that alignment of liquidity availability with production was critical.
Another economist, Ms Gladys Shumbambiri-Mutsopotsi, offered a five-point checklist for success: policy certainty backed by legal frameworks; transparent transition processes to rebuild market confidence; enforceable guarantees for foreign-currency accounts; inclusive consultations, especially among women and small and medium enterprises; and clear guidance on post-2030 business obligations.
“The RBZ must ensure that the road map is legally anchored, inclusive and consistently implemented to inspire lasting confidence,” she said.
While many endorsed the de-dollarisation goal, few were more cautious.
“There are a lot of grey areas that need to be clarified,” investment analyst Mr Tafara Mtutu warned, pointing to fuel pricing, rental agreements and the informal channels through which most US dollars circulate.
“If there is a formal channel to access US dollars without endless scrutiny, it will bring confidence to ZiG, because otherwise, no central bank policy can improve it.”
As Zimbabwe charts its course towards a domestic mono-currency regime, the challenge will be to balance national priorities with practical safeguards and aligning sovereign aspirations with the legal and institutional guarantees necessary to win the trust of savers, borrowers and investors alike.
Online Reporter