Online Reporter
Business Reporter
TREASURY will pay all current and new local suppliers exclusively in the domestic currency, the Zimbabwe Gold (ZiG), under a stringent new pricing framework designed to entrench the use of the local unit and tighten control over public spending.
Finance, Economic Development and Investment Promotion Minister Mthuli Ncube announced the measure on Friday alongside the introduction of a National Standard Price List (NSPL), which will set reference prices for commonly procured goods and services across all Government ministries, departments, and agencies.
The directive confirms a major policy shift signalled in the 2026 National Budget, positioning the Government as the primary driver of local currency adoption. According to a statement from the Ministry of Finance, Economic Development and Investment Promotion, the move is intended to guarantee value for money, enhance transparency, and achieve cost savings in public procurement.
“The Government of Zimbabwe will lead in the use of the local currency, and as a result, payments to local suppliers will be made solely in the local currency,” Minister Ncube said. The Treasury confirmed that further implementation guidelines have been disseminated to ministries via Treasury Circular No. 4 of 2026 and a directive from the Procurement Regulatory Authority of Zimbabwe.
The policy forms part of broader public financial management reforms, including the rollout of an electronic Government Procurement (e-GP) system. Authorities also signalled that preference would now be given to domestically produced goods and services.
The announcement comes amid a concerted push by monetary authorities to strengthen confidence in the ZiG. The Reserve Bank of Zimbabwe (RBZ) is preparing to introduce a new series of ZiG banknotes — featuring higher denominations of ZiG50, and eventually ZiG100 and ZiG200 — into circulation from 7 April 2026.
While inflation has cooled to historic lows, dropping to 3, 8 percent in February, the bulk of transactions in the economy, particularly in the informal sector, are still conducted in US dollars.
The Treasury’s move to force local suppliers onto the local currency is seen as a critical test of the Government’s commitment to reducing dollarisation.
The new procurement directive does not affect payments to foreign suppliers, who are expected to continue receiving foreign currency.
