Zimbabwe's business leaders have called on the government to adopt a clear, market-driven mono-currency transition strategy that will not destabilise businesses or derail investment projects. The appeal comes amid rising concerns over government plans to phase out the use of multiple currencies by 2030 in favour of the Zimbabwe Gold (ZiG), despite an economy that remains overwhelmingly dollarised.
Official statistics reveal that at least 80 percent of the formal market operates using the U.S. dollar, while the informal sector - which accounts for nearly 70 percent of the economy - is even more reliant on the greenback. This widespread use of the dollar has cast doubt over the feasibility of the government's mono-currency vision.
Speaking at the launch of the Zimbabwe National Chamber of Commerce (ZNCC) 2025 Annual Congress, ZNCC president Tapiwa Karoro warned that any abrupt shift toward a single domestic currency would erode trust and trigger further instability.
"As the ZNCC, we believe that a mono-currency system should be the long-term goal, but this must be market-driven, guided by confidence and not compulsion," said Karoro. "Abrupt administrative impositions will definitely erode trust. What we need is a strict, transparent transition underpinned by strong economic fundamentals."
Karoro further stressed the need to reform Zimbabwe's complex and costly regulatory environment, which he said remains a major obstacle to doing business. He described the current framework - marked by overlapping licences, levies, and regulatory mandates - as an impediment to investment and formalisation, particularly for small-to-medium-sized enterprises.
His comments were echoed by other delegates at the congress, who also highlighted crippling electricity shortages, an unsustainable tax burden, and outdated industrial infrastructure as barriers to growth. Several companies have either entered corporate rescue or shut down in recent months.
The government's target to de-dollarise by 2030 is enshrined in its National Development Strategy 2 (NDS2), which aims to transform Zimbabwe into an upper-middle-income economy within the next five years. But critics argue that the country's repeated currency failures - including the Zimdollar, Bond Notes, RTGS, and now ZiG - have made the public and business community deeply sceptical.
The International Monetary Fund (IMF), which concluded its Article IV Consultations in Harare last week, warned that Zimbabwe must strengthen its monetary and forex frameworks if it is to achieve a smooth transition to a mono-currency. The IMF also noted the urgent need to reform currency management and adopt a more market-based exchange rate.
Reserve Bank of Zimbabwe (RBZ) Deputy Governor Innocent Matshe responded to these concerns by assuring delegates that the central bank was working tirelessly to ensure currency stability. He reaffirmed the RBZ's commitment to the ZiG, introduced in April 2024, despite its September devaluation which raised questions about the bank's controlled exchange rate regime.
According to the RBZ, as of mid-June, the local currency in circulation - comprising ZiG4.7 billion in reserve money and ZiG15.5 billion in total deposits - was backed by US$701 million in reserves. However, the central bank also estimated that US$2.5 billion remains unbanked in the informal market, further complicating monetary policy efforts.
A key challenge remains Zimbabwe's underperforming manufacturing sector, which currently contributes just 9 percent to GDP - far below its historic peak of 23 percent. Revitalising the sector could help generate export revenue and reduce reliance on foreign currency.
United Nations Resident Coordinator Edward Kallon called on Zimbabwe to embrace renewable energy, digitalisation, education, and inclusive social policies as the foundation for sustainable industrial growth. He said these pillars must be at the centre of government investment strategies to support NDS2 goals.
"Renewable energy is the engine of manufacturing. Fossil fuels are no longer the alternative," said Kallon. "We must also address climate change, biodiversity, and pollution if we are serious about long-term growth."
As the ZNCC Congress continues, the consensus among industry players is that while the ambition to adopt a stable mono-currency is laudable, it must be anchored in economic realism. Business leaders are demanding predictability, transparency, and a consultative approach if Zimbabwe is to successfully transition to a local currency-led economy without derailing recovery prospects.
- newsday
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