Rand remains currency of choice in Matebeleland

Published: 2 hours ago

While authorities celebrate the rollout of new Zimbabwe Gold (ZiG) banknotes, uptake on the ground remains limited in parts of Matebeleland, where the South African rand continues to dominate everyday transactions.

On April 7, the Reserve Bank of Zimbabwe (RBZ) introduced a new series of ZiG banknotes to circulate alongside those launched in April 2024. The latest rollout includes ZiG10, ZiG20 and ZiG50 notes, with higher denominations - ZiG100 and ZiG200 - expected to follow. Existing ZiG coins remain in circulation.

However, surveys in Bulawayo and surrounding districts suggest the physical notes have yet to make a meaningful impact, with most residents relying on foreign currencies, particularly the rand.

In Bulawayo's central business district, reactions to the announcement were marked by indifference. One shopper, Nkosana Moyo, said he had neither seen nor used the ZiG notes.

"Another new note?" he remarked. "We never saw them either. The rand took over, and we never looked back. The ZiG might work in Harare, but our pockets answer to Pretoria."

Across Matebeleland, the dominance of the rand is largely sustained by remittances from South Africa and Botswana. Communities in districts such as Tsholotsho, Bulilima, Mangwe, Matobo and Gwanda depend heavily on cross-border financial support, reinforcing the circulation of foreign currencies.

Betty Sibanda, a resident of Plumtree, said she had never handled ZiG notes.

"We are only familiar with the rand and the pula here," she said. "Even when I travel to Bulawayo, kombi drivers and traders want rand or US dollars."

Transport operators echo similar sentiments. Bulawayo commuter omnibus driver Ashly Sibanda said the public transport sector operates almost exclusively in foreign currency.

"Even if we accepted ZiG, where would we use it?" he asked. "Everything here is priced in rand or US dollars."

Economic analysts say the situation reflects deeper structural challenges within Zimbabwe's economy, where prolonged instability has created fragmented currency systems driven by access to foreign income streams.

"The crisis has led to the emergence of parallel economic realities," one commentator noted. "Those with access to remittances operate in stronger currencies, while others are left behind."

Despite limited circulation of physical notes, the ZiG retains some relevance in electronic transactions, particularly for paying utility bills and purchasing airtime.

The RBZ hopes the introduction of higher denominations and continued circulation efforts will improve adoption, but for now, in much of Matebeleland, the rand remains firmly entrenched as the currency of choice.
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