Zimbabwe Shifts to Exclusive ZiG Payments for Public Sector Suppliers In a major policy move aimed at strengthening the domestic currency, the Government of Zimbabwe has announced that all local public sector suppliers and contractors will now be settled exclusively in Zimbabwe Gold (ZiG).

The Reserve Bank of Zimbabwe (RBZ) has fully endorsed this decision, which follows the implementation of the National Standard Price List (NSPL) to guide public sector procurement. This shift is seen as a "bold step" toward de-dollarizing the economy and transitioning toward the exclusive use of local currency.

Encouraging the Use of ZiG The primary goal of this directive is to increase the demand for ZiG. By paying contractors and suppliers solely in the local unit, the government is creating a critical "Condition Precedent" (CP) for the country’s eventual full transition to a mono-currency system.

RBZ Governor Dr. John Mushayavanhu noted that this move complements the strategic intent of the Ministry of Finance to anchor exchange rate expectations and maintain the stability seen in early 2026.

Access to Foreign Currency for Imports A common concern for contractors is the need for foreign currency to import raw materials or equipment. To address this, the Reserve Bank has provided two major assurances:

WBWS Interbank Market: Suppliers receiving ZiG payments will have guaranteed access to foreign currency through the Willing-Buyer Willing-Seller (WBWS) exchange market for their "bonafide" (legitimate) import requirements.

Sufficient Reserves: The RBZ reiterated that Zimbabwe has sufficient foreign currency reserves—citing receipts of up to US$16 billion in 2025—to cover all legitimate foreign payment transactions.

Inflation Control and Economic Stability The announcement highlights a positive trend in Zimbabwe’s macro-economics:

January 2026 Inflation: 4.1%

February 2026 Inflation: 3.85%

The RBZ argues that these single-digit inflation levels prove that the ZiG is stable. Consequently, paying suppliers in ZiG should not negatively impact business operations, provided the exchange rate remains anchored.

Is This the End of the Multicurrency System? The RBZ was quick to clarify that this stance does not signal the immediate end of the multicurrency system for the general public. While the government is leading by example in the public sector, the wider economy will only transition to an exclusive local currency system once all necessary economic conditions are met.

Key Takeaways for Suppliers: Payment Currency: 100% ZiG for all local government contracts.

Pricing: Must align with the National Standard Price List (NSPL).

Import Support: Contractors can still source USD from the interbank market for business-related imports.