Timely Payments Crucial for ZiG Stability, Warns Business Sector

Zimbabwe’s business sector warns that delayed government payments are undermining confidence in the ZiG currency, urging fiscal discipline to sustain its stability and credibility (image source)

HARARE – Zimbabwe’s business community has warned that the survival and credibility of the Zimbabwe Gold (ZiG) currency hinges on the government’s ability to ensure timely payments to suppliers and contractors, according to a position paper submitted by the Confederation of Zimbabwe Industries (CZI) ahead of the 2026 National Budget.

The paper, which outlines key recommendations for fiscal and monetary policy, emphasizes that delayed payments — especially by government departments — are undermining confidence in the newly introduced ZiG currency and threatening its long-term viability. “The ZiG cannot thrive in an environment of payment uncertainty,” the CZI document states. “Timely settlement of obligations is essential to build trust and liquidity.”

The ZiG, launched earlier this year as part of Zimbabwe’s currency reform, is backed by gold reserves and intended to stabilize inflation and restore monetary sovereignty. However, businesses say the currency’s adoption is being hampered by inconsistent payment practices and limited convertibility. “We are seeing cases where suppliers are paid months late, and often in depreciated value,” said CZI president Kurai Matsheza. “This erodes confidence and discourages participation in the formal economy.”

The position paper calls for the Treasury to ring-fence payments in ZiG and ensure that ministries and parastatals settle invoices within 30 days. It also recommends the establishment of a ZiG Liquidity Support Facility to help businesses manage cash flow disruptions. Finance Minister Professor Mthuli Ncube has acknowledged the concerns and said the government is working to improve fiscal discipline and payment systems. He pledged to prioritize supplier payments in the 2026 budget and expand digital platforms for real-time tracking. “We are committed to making ZiG a trusted and functional currency,” Ncube said. “Efficiency in payments is a cornerstone of that goal.”

Economists say the success of ZiG depends not only on its gold backing but also on its usability and credibility in day-to-day transactions. Delayed payments, especially in the public sector, risk creating a parallel market and undermining the currency’s stability. “ZiG must be more than a policy tool — it must be a reliable medium of exchange,” said economist Dr. Nyasha Kaseke. “Timely payments are a litmus test for its credibility.”

The CZI paper also calls for broader reforms, including improved public procurement transparency, reduced fiscal deficits, and alignment of monetary policy with growth targets. It urges the government to consult widely and adopt a pro-business stance in the upcoming budget.

Meanwhile, some businesses have begun demanding partial payments in U.S. dollars to hedge against ZiG volatility, raising concerns about dual pricing and currency fragmentation. “We want to support ZiG, but we need assurances,” said a Harare-based manufacturer who requested anonymity.