Filling stations now taking ZiG
Some service stations across the country have begun accepting payments in the Zimbabwe Gold, signalling growing confidence in the local currency as the Government intensifies efforts to stabilise and entrench its use across the economy.
The development marks a notable shift from the resistance that followed the Reserve Bank of Zimbabwe’s (RBZ) introduction of the ZiG in April 2024, when adoption in key sectors such as fuel remained limited.
The move comes as Government steps up measures to mainstream the currency, including requiring a portion of taxes and public-sector transactions to be settled in ZiG, as part of a broader strategy to reduce reliance on foreign currencies, particularly the United States dollar.
In a snap survey in Bulawayo, our news crews observed motorists purchasing fuel using ZiG at selected service stations, albeit under controlled conditions.
In interviews, industry players said transactions are being conducted at varying exchange rates, reflecting prevailing market dynamics and operational considerations.
Most service stations, however, are limiting the number of ZiG transactions processed at any given time, with caps placed on the volume of local-currency sales.
“We have started accepting ZiG at our station. However, we limit transactions and mostly deal with large corporate clients that deposit funds for fuel purchases on account.
“While volumes are controlled, the system is working smoothly and we are serving motorists efficiently using the local currency,” said a fuel attendant in Bulawayo who declined to be named.
Another petrol attendant said that although exchange rates are guided internally, there is optimism that full ZiG-based transactions could eventually be realised.
“Accepting ZiG has brought convenience to clients who earn in local currency. For now, we are limiting daily transactions to ensure proper monitoring and accountability,” said the attendant.
Motorists have welcomed the development, describing the process as efficient and timely
“I managed to buy fuel using ZiG and the process was quite seamless. It’s a welcome development, especially for those of us who earn in local currency, although one has to be mindful of the exchange rate at each station,” said Mr Charles Phiri.
Business leaders said expanding the use of ZiG in critical sectors is key to restoring confidence and stabilising the economy.
Confederation of Zimbabwe Retailers president Mr Denford Mutashu said wider acceptance of the currency would strengthen its role within the multi-currency system.
“The ZiG is a national sovereign currency. Expanding its usage across sectors strengthens its demand and confirms its growing stability. Service stations that are accepting ZiG are demonstrating both confidence and progressiveness,” he said.
Economic analysts said the move, though still limited, represents an important milestone in the currency’s gradual integration into everyday transactions.
Bulawayo-based analyst Mr Reginald Shoko said fuel retailing has historically been one of the most dollarised sectors, making the acceptance of ZiG a significant breakthrough.
“Fuel has largely been sold in foreign currency, so even limited acceptance of ZiG is a meaningful step. It reflects growing confidence and signals potential for wider adoption as stability improves,” he said.
The ZiG, which is backed by gold reserves and foreign currency holdings, was introduced as part of sweeping monetary reforms aimed at restoring public trust after years of currency volatility.
Economists said the adoption of ZiG in high-demand sectors, such as fuel, is central to achieving long-term monetary stability and reducing dollarisation pressures.
This is a journey we are travelling as a nation. The increasing use of ZiG in strategic sectors such as fuel signals that the economy is steadily aligning with the Government’s vision of a stable and self-sufficient currency system,” said a monetary policy expert.
RBZ Governor Dr John Mushayavanhu recently acknowledged concerns over the limited circulation of ZiG notes, particularly in the southern region, where the US dollar and South African rand have traditionally dominated transactions.
He said the central bank has deployed teams across the region to promote acceptance and build confidence in the currency.
Dr Mushayavanhu added that improving foreign exchange management systems, ensuring stable exchange rate dynamics and enhancing access to foreign currency for legitimate business needs are critical to supporting ZiG’s long-term viability.
Due to proximity to South Africa, most communities in Bulawayo and surrounding provinces continue to rely heavily on the rand and US dollar, especially in informal trade, with ZiG largely confined to formal electronic transactions.
However, improving policy consistency, tighter monetary controls and increased gold reserves backing the currency are beginning to stabilise the exchange rate, creating a more predictable operating environment for businesses.
_Herald_
