Tinotenda Hove – Despite confident claims from Government and economists, scepticism continues to trail the Zimbabwe Gold (ZiG) currency, with critics warning that official optimism is masking deep-seated structural weaknesses and a long history of failed currency experiments.

Authorities insist the ZiG will remain stable this year, pointing to record gold production of more than 46 tonnes in 2025 as evidence that reserves backing the currency are strengthening.

However, many Zimbabweans remain unconvinced, recalling repeated assurances around past currencies that ultimately collapsed under inflation and loss of confidence.

The ZiG, introduced in April 2024 by Reserve Bank of Zimbabwe Governor Dr John Mushayavanhu, was billed as a “durable and credible” local currency backed by gold, precious minerals and foreign currency reserves. Yet, from its inception, the unit was met with market scepticism that has not fully dissipated, particularly in the informal sector where pricing and savings remain heavily dollarised.

While analysts claim the currency’s performance has “steadily improved”, critics argue that any perceived stability is fragile and policy-driven rather than market-driven, sustained by tight controls rather than genuine trust.

Official data shows gold output reached about 46.7 tonnes in 2025, the highest annual figure on record. Economists aligned with Government say this has boosted reserve accumulation, but detractors question how much of the mineral wealth is transparently converted into usable reserves that meaningfully protect the currency.

Zimbabwe Economics Society vice president Dr Misheck Ugaro painted a glowing picture, arguing that rising gold production validates the ZiG framework.

“This is one key attempt to facilitate a long term durable currency and from what we are seeing the nation is on course to exciting times riding on the gains of the domestic currency,” Ugaro said, adding that increased gold output would “definitely lead to more strengthen of the domestic currency”.

However, critics say such statements sound more aspirational than realistic, noting that ordinary citizens continue to experience price instability, low wages and a preference for foreign currencies in daily transactions.

University of Zimbabwe Business School director Professor Albert Makochekanwa also struck an optimistic tone, insisting that a stable domestic currency was within reach.
“A stable and stronger domestic currency is what lays the foundation for exciting times in the economy,” Makochekanwa said, expressing hope that tight monetary policy would enhance competitiveness.

Yet economists outside official circles argue that competitiveness cannot be achieved through policy pronouncements alone, especially in an economy grappling with low industrial capacity, limited investor confidence and weak institutions.

President Emmerson Mnangagwa has joined the chorus of reassurance, citing rising foreign currency inflows and reserve accumulation as signs of macroeconomic stability.

“The tight monetary and fiscal environment in the economy have remained favourable to sustained economic activity,” Mnangagwa said, claiming Government was “diligently implementing the necessary policies” to maintain ZiG stability and control inflation.

He pointed to foreign currency inflows of US$10,4 billion by August 2025 and reserves of about US$900 million by September, up from US$700 million in June. He also said the World Bank had ranked Zimbabwe among top countries for reserve accumulation progress.

But for many Zimbabweans, official statistics and international rankings offer little comfort, as confidence in the ZiG remains weak on the ground, with the US dollar continuing to dominate savings, pricing and long-term planning.