Zimbabwe economy stabilising after ZiG introduction

The Zimbabwean economy has shown relative stability in recent months following the Reserve Bank Governor's Monetary Policy statement on April 5, 2024, and the transition from the Zimbabwe Dollar to Zimbabwe Gold (ZiG).

Finance Minister Professor Mthuli Ncube praised the positive impact of ZiG on the economy, noting its acceptance by the public and economic agents. To maintain this stability, the Treasury is enhancing the Fiscal and Monetary Policy Framework to further anchor the currency, stabilize exchange rates, and control prices.

A key initiative involves a comprehensive review of the Tax Payment Framework to facilitate a smooth transition to local currency payments and to adjust legislative requirements. Minister Ncube emphasized that Corporate Income Tax payments should align with the currency of trade, with the Treasury allowing a 50:50 split between local and foreign currencies for the second quarter of 2024.

Additionally, businesses and the public can pay government fees in local currency unless otherwise specified, and customs duties on imports are generally payable in local currency, except for certain luxury items. The Treasury will soon specify taxes exclusively payable in local currency, pending legislative approval by Parliament.