New ZiG Notes Rollout Seen as Key to Easing Cash Shortages in Southern Zimbabwe
The planned introduction of a new series of ZiG banknotes is being viewed as a crucial step toward improving cash availability in parts of southern Zimbabwe, where foreign currencies remain the primary medium of exchange.
Areas such as Bulawayo, Matabeleland South and sections of Masvingo have long relied on currencies like the South African rand, Botswana pula and the United States dollar for everyday transactions, creating persistent challenges for the circulation of local currency.
Also Read: RBZ Rolls Out Nationwide Awareness Campaign to Promote New ZiG Notes
Consumer Council Calls for Wider Distribution
Consumer Council of Zimbabwe (CCZ) chief executive officer Rosemary Mpofu said the success of the ZiG currency would depend largely on its accessibility and public confidence in using it.
She noted that currency reforms can only succeed if people are able to easily obtain and use the currency in their daily transactions.
According to Mpofu, limited circulation of ZiG banknotes in some regions risks slowing the adoption process and could reinforce the continued use of alternative currencies.
She said authorities need to focus on improving distribution of the notes, while also strengthening public awareness campaigns to help consumers better understand the currency and its role in the economy.
Southern Region’s Unique Currency Dynamics
The southern part of the country has long developed its own currency behaviour due to its close economic links with South Africa.
Cross-border trade, labour migration and tourism have historically entrenched the South African rand as a dominant currency in border communities such as Beitbridge, Plumtree and Victoria Falls.
As a result, many businesses in these areas have operated for years within a mixed-currency environment where the rand plays a central role in day-to-day transactions.
Even under Zimbabwe’s current multi-currency system, the pattern has largely continued.
RBZ Promoting Greater ZiG Usage
Reserve Bank of Zimbabwe Governor Dr John Mushayavanhu acknowledged that the rand’s strong presence in the southern region was largely due to geographic proximity to South Africa.
He said the central bank was actively promoting the use of ZiG in the region as part of broader efforts to strengthen its adoption across the country.
Mushayavanhu noted that electronic transactions involving ZiG have already shown encouraging levels of use, estimated at around 40 percent.
Stability Seen as Foundation for Confidence
The RBZ governor said the relative stability of ZiG over the past year and a half had helped build a foundation for greater trust in the currency.
He said the stability could encourage more people to view ZiG not only as a means of payment but also as a store of value.
While acknowledging the entrenched use of foreign currencies in southern Zimbabwe, Mushayavanhu said authorities were aware of the situation and were working on measures to expand the role of the local currency in the region.
He added that increasing adoption of ZiG would take time, describing the process as a gradual journey toward broader acceptance.
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