Zimbabwe to pay local suppliers only in ZiG

Zimbabwe's Treasury has announced that all payments to local suppliers by government institutions will now be made exclusively in the local currency, the Zimbabwe Gold, under a newly introduced procurement framework.

The policy was unveiled on Friday by Finance minister Mthuli Ncube as part of the rollout of the National Standard Price List (NSPL), a system designed to guide the purchase of goods and services across government institutions.

According to Treasury, the NSPL will establish reference prices for commonly procured items across ministries, departments and agencies to reduce price inconsistencies and tighten control over public spending.

"The Ministry of Finance, Economic Development and Investment Promotion and the Procurement Regulatory Authority of Zimbabwe wish to inform current and potential suppliers that the Government has introduced a National Standard Price List to guide the procurement of commonly used goods and services across ministries, departments and agencies," Ncube said in a statement.

He said the new system aims to ensure value for money while improving transparency and efficiency in the government procurement process.

"The implementation of the NSPL is expected to enhance cost savings, transparency and efficiency in public procurement, thereby supporting national development priorities," Ncube added.

Treasury said the initiative forms part of broader public financial management reforms that include the rollout of the electronic Government Procurement (e-GP) system, enhanced financial oversight and improved budget management.

Authorities also signalled a stronger policy push toward domestic sourcing and wider use of the local currency in government transactions.

"In accordance with the 2026 National Budget Statement, priority will be given to domestically produced goods and services," Ncube said. "Similarly, the Government of Zimbabwe will lead in the use of the local currency, and as a result, payments to local suppliers will be made solely in the local currency."

However, the move could pose challenges for suppliers currently owed United States dollars or those who price their goods in foreign currency, as payments converted into ZiG could expose them to exchange-rate risks and potential value losses.

Treasury said further guidance on implementing the National Standard Price List has already been issued to ministries, departments and agencies through Treasury Circular No. 4 of 2026, as well as an accompanying directive from the Procurement Regulatory Authority of Zimbabwe.