The government’s decision to introduce a National Standard Price List (NSPL) to guide public sector procurement is a welcome intervention. Equally notable is its commitment to settle all obligations to local suppliers and contractors exclusively in Zimbabwe Gold (ZiG). Taken together, these measures represent more than an administrative shift. They signal an important step in the long and difficult effort to establish a functional local currency.
For years, the Zimbabwe Independent has argued that a domestic currency cannot succeed unless the State leads by example. In this regard, the immediate implementation of the NSPL reflects a move from rhetoric to action.
It will be an essential transition. By ensuring that public tenders and contracts are paid solely in ZiG, the government is creating demand for the currency within the economy. This addresses a key condition for any eventual transition away from the multi-currency regime - consistent and large-scale institutional use of the domestic unit.
Yet it would be naïve to assume that a procurement policy on its own will revive confidence in ZiG. Without complementary measures, these reforms will only be symbolic rather than transformative.
One immediate inconsistency lies in how the State prices its own services. It is difficult to reconcile a policy that requires suppliers to accept ZiG while key government services continue to demand hard currency.
Charges for passports, duties, and other official services, including fuel, which remains a reference point in the parallel market, should be payable exclusively in ZiG. As long as the State remains a major collector of US dollars, it undermines the credibility of the currency it seeks to promote.
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Leadership must also set the tone. Distributing US dollars at public events and empowerment programmes sends the wrong signal. When funds are disbursed under initiatives such as the Presidential Youth Empowerment Scheme or the War Veterans Revolving Fund, they should be issued in ZiG.
Images of senior officials handing out US dollars inevitably erode confidence in the local currency. If ZiG is suitable for paying contractors and suppliers, it should equally be seen as fit for empowering citizens. Currency confidence is shaped as much by symbolism as by policy.
Banks, too, have a critical role to play. For ZiG to function effectively, it must be readily accessible. At present, the limited availability of ZiG notes and the relative difficulty of accessing electronic ZiG platforms compared to US dollar facilities continue to push many transactions into the informal market. Banks must ensure that automated teller machines are consistently stocked with ZiG and that digital payment systems support smooth, reliable transactions.
The introduction of the NSPL is an important first step. However, a currency’s strength ultimately depends on the ecosystem that sustains it.