Zimbabwe’s Finance Minister Mthuli Ncube unveiled additional measures on Thursday aimed at increasing the adoption of the newly-introduced Zimbabwe Gold (ZiG) currency.
Speaking during his 2024 mid-term budget address in Parliament, Ncube highlighted that since its launch in April, ZiG has contributed to a period of price and exchange rate stability. The government’s latest initiatives are designed to further embed the currency into both transactional and savings practices across various sectors of the economy.
Ncube outlined that private sector entities—including manufacturers, retailers, wholesalers, public transport operators, and informal sector players—are expected to utilise ZiG for all forms of transactions. Additionally, certain taxes and fees for government services will now be payable exclusively in the local currency, a move intended to bolster demand and normalise the use of ZiG.
Zimbabwe operates under a multi-currency system, which is set to remain in place until 2030. The Reserve Bank of Zimbabwe (RBZ) reports that approximately 80 per cent of business transactions in the country are currently conducted in U.S. dollars. The central bank aims to gradually reduce this dependency by increasing ZiG usage, targeting a reduction of the U.S. dollar’s share in the economy to 70 per cent by year-end.
To further support these efforts, proposed legislation will mandate that corporations whose revenue is predominantly in foreign currency account for corporate tax on a 50:50 basis between ZiG and foreign currencies.
The new policies mark a significant step in Zimbabwe’s ongoing effort to de-dollarise its economy and strengthen the role of its local currency amidst broader economic reforms.
