Treasury to pay local suppliers exclusively in ZiG

STAFF WRITER
Treasury will now pay all current and new local suppliers exclusively in the domestic currency, the Zimbabwe Gold (ZiG), under a stringent new pricing framework designed to entrench the use of the local unit while tightening control over public spending.
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube announced the measure on Friday alongside the introduction of a National Standard Price List (NSPL), which will set reference prices for commonly procured goods and services across all government ministries, departments and agencies.
The directive confirms a significant policy shift first signalled in the 2026 National Budget, positioning the Government as the primary driver of local currency adoption.
According to a statement from the Ministry of Finance, Economic Development and Investment Promotion, the move is intended to guarantee value for money, enhance transparency and deliver cost savings in public procurement.
“The Government of Zimbabwe will lead in the use of the local currency, and as a result, payments to local suppliers will be made solely in the local currency,” Ncube said.
Treasury confirmed that further implementation guidelines have already been circulated to ministries through Treasury Circular No. 4 of 2026, alongside a directive issued by the Procurement Regulatory Authority of Zimbabwe (PRAZ).
The policy forms part of broader public financial management reforms, including the rollout of an electronic Government Procurement (e-GP) system aimed at strengthening accountability and efficiency in state purchasing.
Authorities also signalled that preference will increasingly be given to domestically produced goods and services under the revised procurement framework.
The announcement comes as monetary authorities intensify efforts to strengthen confidence in the ZiG.
The Reserve Bank of Zimbabwe (RBZ) is preparing to introduce a new series of ZiG banknotes, featuring higher denominations of ZiG50, and eventually ZiG100 and ZiG200, into circulation starting April 7, 2026.
Although inflation has cooled sharply to historic lows, declining to 3.8% in February, the majority of transactions across the economy, particularly within the informal sector, continue to be conducted in US dollars.
Treasury’s decision to require local suppliers to transact in ZiG is widely viewed as a crucial test of the Government’s commitment to reducing dollarisation and deepening the circulation of the domestic currency.
However, the new procurement directive does not affect payments to foreign suppliers, who will continue to receive payments in foreign currency.