Zimbabwean businesses remain sceptical over ZiG

The Confederation of Zimbabwe Industries (CZI) has revealed that most businesses remain sceptical about the Zimbabwe Gold (ZiG) currency, with many viewing its current stability as artificial and unlikely to be sustained.

In its 2025 Third Quarter Business Insights report, based on a survey of 514 firms covering the nine months to September 30, 2025, CZI said confidence in the local currency remains weak among its members despite continued assurances from the Reserve Bank of Zimbabwe and the Ministry of Finance, Economic Development and Investment Promotion.

The business lobby noted that while authorities have pointed to slowing inflation as evidence of stability, underlying indicators tell a more complex story. US dollar inflation stood at 13,1% last month, even as ZiG inflation fell sharply to 19%, a divergence that CZI says suggests an exchange rate that is heavily controlled and not fully reflective of the currency's true market value.

"Most businesses that are sceptical about the ZiG currency believe that its current stability is artificial and unsustainable," CZI said in the report.

"Many perceive that the value of the ZiG is being tightly managed by the government through strict monetary controls, restricted liquidity and delayed payments to suppliers and contractors."

According to CZI, this has created a perception that the currency's stability is being driven largely by administrative interventions rather than genuine market confidence.

Firms also reported persistent challenges in accessing ZiG, both in cash and electronic form, limiting its usefulness in the real economy.

"It is not widely accepted for critical transactions such as fuel, imports and raw materials," the report said.

CZI added that Zimbabwe's history of currency collapse and episodes of hyperinflation have further undermined trust in any new local unit of account.

"They expressed fear that the current stability could be short-lived, as it depends heavily on government control and liquidity suppression," the organisation said.

"There is also a prevailing concern that once the government begins releasing larger amounts of ZiG into circulation, for instance through increased public spending or contractor payments, the currency could quickly lose value."

As a result, many businesses believe the ZiG's stability is being supported more by scarcity than by strong economic fundamentals.

The findings come as the government presses ahead with plans to de-dollarise the economy by 2030, a policy objective that continues to face resistance from sections of the private sector wary of renewed currency volatility.