By Beverly Bizeki /Virginia Njovo
At a busy kombi rank in Masvingo, operators turn away passengers who offer Zimbabwe’s local currency, the Zimbabwe Gold (ZiG). Instead, they demand either R5 coins or US dollars. Their reasons are simple, the notes are scarce, and they are not aware of the exchange rates and most importantly, they say ZiG cannot buy fuel which is the lifeblood of their business.
While the Reserve Bank of Zimbabwe (RBZ) insists that the ZiG is now backed by over US$700 million in reserves which means there is growing sustainability of the currency, and the International Monetary Fund (IMF) has publicly endorsed its adoption as a sole currency, a very different reality is playing out on Masvingo’s streets. The local currency is scarce, and confidence in its practicality remains low.
A survey conducted by TellZim News reveals that while vendors and ordinary residents are open to using ZiG, they simply cannot access it. Vendors in Masvingo’s Central Business District (CBD) said customers were rarely paying in ZiG, unlike in Harare where it is part of daily transactions.
“We have never rejected ZiG at our markets. The problem is that it is not circulating here in Masvingo. Customers are not bringing it, yet we need it to restock in supermarkets where it is accepted with at least better rates. The few notes we often get come from people traveling from Harare,” said one vendor in the CBD only identified as Mai Tinashe.
Other vendors said even when they try to circulate the currency, many consumers were hesitant in accepting it.
“When you give customers change in ZiG, some refuse, saying they do not know where else they can use it. It is risky for us to accept something that you may not be able to give the next person,” said another vendor.
For commuters like Mai Junior, early signs of rejection from kombi operators discouraged broader acceptance.
“At first, we tried to accept ZiG as change from vendors, but when we wanted to use it for kombis, it was rejected. That is when we gave up on it. We last used it in months,” she said.
Transport operators argue that without access to fuel purchases in ZiG, the currency remains impractical for their operations.
“As kombi drivers, we cannot accept payments in ZiG. It’s not that we do not want to, but service stations do not accept it for fuel purchases. Once fuel suppliers start taking ZiG, we’ll have no problem using it,” said Rasta, a local kombi operator.
The reluctance in Masvingo highlights the broader challenge facing Zimbabwe’s monetary authorities: restoring public confidence in a country where currency failures remain fresh in collective memory.
Stakeholders have argued that pricing fuel in the local currency was likely to cause shortages thereby downplaying the local currency.
Even as international institutions like the IMF express confidence, day-to-day survival decisions in cities like Masvingo may ultimately determine whether the ZiG sinks or survives.
