Professor Mugano's meeting with RBZ Governor raises eyebrows

Outspoken economist and long-time government critic Professor Gift Mugano has surprised many after expressing praise for the Reserve Bank of Zimbabwe (RBZ) and its team following a meeting with the central bank's leadership.

Posting on his official X (formerly Twitter) account, Mugano wrote:
"Today I had the privilege to meet the Governor of @ReserveBankZIM & his team. We had productive & constructive discussions on what should be done to make our national currency work! I was impressed with the work the RBZ team is doing to defend the currency 👏👏👏."

Today I had the privilege to meet the Governor of ⁦@ReserveBankZIM⁩ & his team.

We had productive & constructive discussions on what should be done to make our national currency work!

I was impressed with the work the RBZ team is doing to defend the currency 👏👏👏 pic.twitter.com/fZYAeno9s3

— PROFESSOR GIFT MUGANO (Ph.D) (@gift_mugano) July 24, 2025

This unexpected turn has sparked debate across economic and political circles, especially given Mugano's strong opposition to the government's currency reforms in recent years, including the controversial introduction of the Zimbabwe Gold (ZiG) currency.

Mugano, who was dismissed from the ZimTrade board in 2023 by Foreign Affairs Minister Frederick Shava amid tensions over his public criticisms, has frequently accused the government of rehashing failed monetary experiments. In 2024, he dismissed the structured currency initiative - later branded as ZiG - as "nothing new," arguing it would suffer the same fate as past instruments like bond notes, gold coins, and digital gold tokens.

In one of his most scathing critiques, Mugano posed a rhetorical challenge:

"Does the structured currency help us to address currency crisis? The answer is no, and that is the V11," he said, referencing hard evidence of failure.
"Why didn't these gold coins, gold tokens succeed in guaranteeing stability? Then why is a bond note backed by Afreximbank failing to guarantee 1:1?"

He further accused authorities of relying on elaborate jargon without addressing the real economic fundamentals such as low production, lack of domestic savings, and investor confidence.

"The strength of the currency in any country is a reflection of the country's production capacity," Mugano previously said. "In 1996, the savings-to-GDP ratio was 25 percent. Right now, it's at negative 11 percent."

He also claimed that restoring trust in the financial system would require broader political reforms, suggesting a change in leadership could help rebuild faith in institutions and the banking sector.

Given this background, Mugano's latest public praise for the RBZ Governor and his team has raised questions about whether his position has softened or if behind-the-scenes dialogue has brought him to view the central bank's efforts in a new light.

While some applaud the economist's willingness to engage, others remain skeptical. "Has Mugano changed his tune or is this just diplomacy?" one X user commented. Another added, "We need consistent voices. If things are improving, let's see the numbers, not just meetings."

The RBZ has been on a campaign to defend the ZiG currency and restore market confidence after years of hyperinflation, currency switches, and economic volatility. Despite initial skepticism, the central bank insists that the gold-backed ZiG will bring stability and long-term value retention.

Whether Professor Mugano's new outlook signals a broader shift in expert opinion—or merely reflects a constructive moment in policy dialogue—remains to be seen. But his comments have undoubtedly sparked renewed public scrutiny of both the RBZ's performance and the credibility of the ZiG project.