Alarm As RBZ Announces Payment Of Public Sector Suppliers In ZiG – Eduzim News

Tinashe Sambiri-
Businesses and contractors who supply goods and services to government have raised alarm following an announcement by the Reserve Bank of Zimbabwe (RBZ) that public sector suppliers will now be paid exclusively in the local currency, the Zimbabwe Gold (ZiG).

The policy, which was endorsed by Finance Minister Mthuli Ncube, has triggered fears among suppliers who worry that the move could expose them to losses, corruption and potential underpayment if the local currency weakens against the US dollar.

In a statement released on 16 March, RBZ Governor John Mushayavanhu praised government’s decision, describing it as a major step toward strengthening the domestic currency.

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

He added that government deserved recognition for adopting the policy.
“Government is therefore commended for taking a lead and a bold step in settling all its local suppliers and contractors exclusively in local currency, ZiG.”

Authorities say the measure is meant to boost demand for the local currency and eventually pave the way for Zimbabwe to transition to full use of the domestic currency.

“The immediate implementation of the NSPL will go a long way in promoting demand and increased use of ZiG in the economy, a critical condition precedent for the envisaged transition to the exclusive use of the domestic currency,” Mushayavanhu said.

However, the move has unsettled many suppliers who fear the policy could revive economic instability reminiscent of previous currency collapses. Some contractors privately expressed concern that being paid solely in ZiG could expose them to exchange rate losses, especially when many inputs and imports are priced in US dollars
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Others worry the policy could fuel corruption within government procurement systems, where officials may allegedly manipulate payment processes or force suppliers to accept discounted ZiG payments.

RBZ attempted to calm those fears by insisting that businesses paid in ZiG would still be able to obtain foreign currency through official channels.

“Providers of goods and services to the public sector that will receive payment in ZiG will have access to foreign currency on the willing-buyer willing-seller interbank foreign exchange market for their bona fide import requirements,” Mushayavanhu said.

The central bank also insisted that Zimbabwe had sufficient foreign currency reserves to meet demand.
“The Reserve Bank reiterates that the country has enough foreign currency to cover all bona fide foreign currency demand for settling foreign payment transactions.”

Authorities further argued that recent economic indicators showed the currency was stabilising.
“Single digit inflation levels achieved in January and February 2026 show that inflation and exchange rate expectations have been anchored,” Mushayavanhu said.

Despite these assurances, economic observers say confidence in local currency systems remains fragile due to Zimbabwe’s long history of abrupt monetary policy shifts and currency devaluations.

RBZ also stressed that the new policy does not immediately signal the end of the multi-currency system dominated by the US dollar.

“The stance taken by government to pay its local suppliers and contractors exclusively in ZiG does not signal the end of the multicurrency system,” Mushayavanhu said.

But critics argue that the move could be the first step toward phasing out the US dollar in government transactions, raising fears that suppliers could ultimately bear the cost if the ZiG weakens or if payments are delayed.

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