Property developers cut risk as ZiG uncertainty grows

Property developers in Zimbabwe are shortening payment terms and shelving long-term projects amid growing uncertainty over the Zimbabwe Gold (ZiG) currency and speculation about a possible shift toward a mono-currency system.

Industry players say the policy ambiguity is already reshaping investment decisions in the real estate sector, despite assurances from the Reserve Bank of Zimbabwe (RBZ) that foreign currency-denominated transactions and assets will be protected.

In its February 2026 Monetary Policy Statement, the Reserve Bank of Zimbabwe stated that foreign currency deals and listed equities would not be forcibly converted under a future mono-currency framework.

However, developers say concerns over exchange rate risk remain a major constraint on long-term planning.

Arnold Khanda, interim chairperson of the Property Developers Association of Zimbabwe, said uncertainty continues to weigh heavily on the sector.

"Uncertainty remains the single biggest obstacle," he said, adding that developers are increasingly capping payment terms and scaling back projects beyond 2030 to avoid potential currency losses.

The property sector, which typically operates on three to five-year investment cycles, is particularly exposed to currency volatility. Developers say this makes long-term commitments risky in an environment where future monetary policy direction is unclear.

"It is not that we are betting on the ZiG falling, but as they say 'once bitten, twice shy'," Khanda said. "Currently, all sales contracts are in US dollars, and most developers are only offering terms up to 2030 to avoid exchange risk."

Zimbabwe's history of currency instability, including episodes of hyperinflation, continues to influence investor behaviour, with firms reluctant to lock capital into long-term local currency exposure.

Khanda said clearer policy direction is urgently needed to restore confidence.

"The governor gave indications on a gradual transition and grandfather clauses, but we have had proclamations that turned out to be completely false," he said.

He added that investors need a formal and binding roadmap outlining the future of currency policy.

"Until the governor and the Ministry of Finance issue a clear and precise roadmap backed by a statutory instrument, no one knows whether the US dollar will still be legal tender beyond 2030," he said.

Analysts say the uncertainty could slow down property development activity, particularly large-scale commercial and residential projects, as investors adopt a more cautious, short-term approach to safeguard returns.