Suppliers Warn Of Chaos As Government Enforces ZiG Transactions – Eduzim News

Tinashe Sambiri – Zimbabwe’s plan to pay local suppliers exclusively in the local currency, ZiG, has sparked alarm among businesses and economists, with critics warning it could worsen inflation, destabilise the exchange rate, and fuel a return to black market currency trading.

On 13 March 2026, Finance Minister Mthuli Ncube announced that all payments to local suppliers would now be made solely in ZiG, a move that has left many suppliers fearing for their cash flow and ability to source foreign currency for imports.

Speaking on Tuesday, 17 March, John Mushayavanhu, Governor of the Reserve Bank of Zimbabwe, attempted to reassure the public that the measure “does not signal the end of the multicurrency system.”

He added that suppliers could still obtain foreign currency on the official interbank market for legitimate import needs.

“The Reserve Bank welcomes the pronouncement by the Minister of Finance, Economic Development and Investment Promotion, Hon. Prof. Mthuli Ncube, on the implementation of the National Standard Price List to guide Public Sector procurement,” Mushayavanhu said.

He stressed that paying suppliers in ZiG would “promote the demand and increased use of ZiG in the economy” and claimed that the country has sufficient foreign currency to meet all genuine import requirements.

However, critics argue that these assurances are unlikely to calm widespread fears. Many suppliers warn they will be forced to buy US dollars on the black market to meet operational needs, potentially pushing up the parallel market rate and further stoking inflation.

“Even if RBZ says there’s enough foreign currency, the reality on the ground is different. Suppliers may struggle to access dollars, which will raise costs and hurt business,” one Harare-based supplier said.

Mushayavanhu also cited recent low inflation figures—4.1% in January and 3.85% in February 2026—as evidence that payment in ZiG will not disrupt business operations. He stated, “Public Sector suppliers and contractors can be assured that payment in ZiG will not negatively impact their business operations.”

But economists remain sceptical, noting that forcing all government payments into the local currency could reduce confidence in the ZiG, increase demand for hard currency outside official channels, and ultimately destabilise both the exchange rate and inflation expectations.

“The government is essentially forcing suppliers to accept a currency that is still seen as volatile. This could push more businesses into black market dealings and inflate prices across the board,” warned an economic analyst.

Despite RBZ’s assurances, the move is being viewed by many as a risky step that prioritises the promotion of ZiG over economic stability and the practical realities faced by Zimbabwean businesses.

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