Tapiwanashe Mangwiro, Zimpapers Business Hub
THE Zimbabwe Gold (ZiG) is gaining significant traction, now accounting for over 40 percent of electronic payment transactions six months after the Reserve Bank of Zimbabwe (RBZ) implemented a series of targeted interventions.
According to the RBZ, the proportion of ZiG transactions in the national payment system rose from 26 percent in April 2024 to over 40 percent in June 2025, reflecting both policy success and increasing public confidence. Electronic channels include RTGS, cards, mobile money, mobile apps and online platforms.
Governor Dr John Mushayavanhu, in his latest Mid-Term Monetary Policy Statement, stated: “The increased usage of ZiG underscores our dual objective of fostering financial inclusion and dedollarisation. “We continue to ensure the wider availability of ZiG cash through the banking system, complementing digital efforts.”
To support cash usage, the central bank directed banks to maintain at least three percent of ZiG deposits in cash reserves, aligned with regional benchmarks. Banks were also mandated to increase ZiG availability through ATMs and banking halls, with full compliance expected by September 2025.
To further strengthen local currency adoption, several concrete measures were introduced at the beginning of the year, with the foreign currency retention ratio increased to 30 percent from 25 percent, to ensure companies have adequate ZiG for local raw material acquisition.
Additionally, to promote the circulation of ZiG within banking channels, the Government mandated that all presumptive taxes be paid in local currency, regardless of the currency used for business transactions.
Small and micro enterprises were encouraged to use point-of-sale machines and maintain bank accounts linked to the tax authority.
Corporate taxation was adjusted so that companies earning more than half their revenue in foreign currency pay taxes on a 50/50 basis in local and foreign currency, while those earning predominantly in ZiG pay taxes proportionately to the currency of trade.
Moreover, fees for precious stone dealing registration, approved prospector registration, special mining lease registration, liquor licensing and vehicle licensing are now payable in local currency.
Payment system expert, Rudo Mutetwa, praised these initiatives. “Ensuring ample ZiG cash in ATMs and branches removes a key barrier to adoption, especially in rural areas where digital literacy remains limited. Coupled with these policy measures, it strengthens public trust in the local unit,” she said.
Despite the rise of electronic payments, cash remains vital.
A recent survey highlighted that 60 percent of small businesses continue to prefer cash for daily transactions. Dr Mushayavanhu emphasised: “Our approach is not to supplant cash but to balance digital innovation with cash availability, catering to all segments of society.”
The RBZ’s policy interventions have also helped dampen inflation since January, tightening liquidity and supporting the ZiG’s purchasing power. The recalibration of Non-Negotiable Certificates of Deposit (NNCDs) to a fixed 30-day tenor curtailed early redemptions, restricting excess cash circulation and stabilising the currency.
This “Back-to-Basics” framework under reserve-money targeting has underpinned both rate stability and currency confidence.
Deputy Governor Dr Innocent Matshe, recently reiterated the 2030 dedollarisation target.
“This economy is affected by low liquidity, especially in the US dollar, which we cannot control at all,” he said. “Dedollarisation is the best route available to give us full control over our monetary policy and drive economic growth.”
Economist, Ms Gladys Shumbambiri-Mutsopotsi outlined the conditions necessary for a successful transition, emphasising that dedollarisation requires adequate ZiG availability, fiscal discipline, and a sustained increase in domestic production to reduce import dependence.
Alois Burutsa, Director of Buy Zimbabwe, an advocacy for the consumption of locally produced goods, linked the dedollarisation drive to a broader thrust under President Mnangagwa’s administration.
“Local procurement is a key factor in reducing imports and making it easier to dedollarise,” he said, noting that cabinet processes are increasingly favouring domestic suppliers.
Mr Malone Gwadu, an investment analyst, praised the RBZ’s disciplined approach, highlighting the role of the Macroeconomic Stability and Financial Deepening (MESFIND) framework under National Development Strategy II.
“The roadmap 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 further stressed that boosting productive capacity is critical to defending the ZiG.
“Alignment of currency availability with domestic production ensures the ZiG’s stability and reinforces public confidence,” he said.
This growing confidence is evident among citizens and entrepreneurs. “As a business owner, I have started accepting ZiG payments because it is showing signs of stability. I can now plan short-term operations like restocking and paying suppliers without worrying about sudden value loss,” said Mr Kelvin Mombe, an entrepreneur.
Mr Tinashe Tsodzo added: “The rise in ZiG usage signals progress in our financial ecosystem. It is giving me options to buy goods in most shops now that previously did not accept the currency.”
With the National Development Strategy II expected to crystallise the dedollarisation roadmap, Governor Mushayavanhu affirmed: “Continued clarity on the transition will further bolster confidence, shape expectations, and cement the ZiG as the primary unit of account.”
These measures, already in effect, not only reinforce macroeconomic stability but also foster innovation in local payments and financial inclusion, marking a significant milestone in Zimbabwe’s path toward a fully functional domestic currency.
