Zimbabwe’s leading business executives have raised urgent concerns over the deepening instability of the Zimbabwe Gold (ZiG) currency, warning that its continued volatility is undermining industrial production, deterring investment, and threatening the country’s fragile economic recovery. Their alarm comes amid soaring inflation and a worsening debt crisis that now casts a long shadow over the nation’s economic prospects.
Speaking at the Zimbabwe National Chamber of Commerce (ZNCC) Annual Conference in Victoria Falls, ZNCC Chief Executive Officer Christopher Mugaga stated that the ZiG’s persistent devaluation is a key obstacle to restoring business confidence. Following a dramatic 43% devaluation in September 2024, the ZiG has remained volatile, with few signs of stabilisation despite being partly backed by gold reserves.
Inflation has surged to alarming levels, reaching 92.1% in May 2025 up from 85.7% the previous month, fueling fears that June could bring even worse figures. The sharp erosion in purchasing power has not only battered consumer confidence but also disrupted supply chains, stalled production lines, and made long-term business planning nearly impossible.
“We are not against a local currency,” Mugaga said, “but we need a stable and trustworthy one. Stability is a prerequisite for economic recovery, investment, and sustainable growth.”
Since the ZiG’s launch in April 2024, businesses and consumers alike have remained wary. Many continue to trade and save in foreign currencies, particularly the US dollar, to hedge against inflation and currency risk. The resulting dual economy has further complicated pricing and wage negotiations, forcing businesses into a cycle of reactive decision-making rather than strategic planning.
Economists warn that such monetary instability poses systemic risks. “Without a dependable currency, business becomes guesswork,” said a Harare-based economist. “There is no accurate forecasting when the value of money is in flux. Importation, payroll, investment all of it becomes a gamble.”
Compounding the economic crisis is Zimbabwe’s ballooning public debt, which the International Monetary Fund (IMF) pegged at US$21.2 billion in 2023, an unsustainable 96.6% of GDP. The IMF has called for urgent fiscal reforms, improved debt management, and the settlement of external arrears to restore access to international financial assistance.
“The debt overhang means we cannot attract affordable or long-term capital,” Mugaga said. “Until we fix this, our economy will remain trapped in a vicious cycle.”
ZNCC President Tapiwa Karoro stressed the need for a coordinated economic strategy, including monetary reforms, debt restructuring, and fiscal transparency. He emphasized that a clear currency transition plan is essential to avoid repeating past failures such as the 2008 hyperinflation crisis.
“Industrial resilience depends on consistent policy direction, inclusive governance, and economic accountability,” Karoro said. “We cannot afford policy reversals or ad hoc interventions.”
Beyond the ZiG’s instability, the private sector is burdened by excessive taxation, aggressive revenue collection practices, liquidity shortages, and unpredictable regulatory shifts, all of which contribute to a challenging operating environment. Business leaders say these conditions are accelerating de-industrialisation and job losses.
While the government maintains that the ZiG is critical to regaining monetary sovereignty, industry players argue that such sovereignty is meaningless without credibility and confidence in the currency. They are urging authorities to adopt market-based reforms and prioritize transparency in all fiscal and monetary decisions.
As the ZNCC conference continues, the call for inclusive and evidence-based policymaking grows louder. Business leaders hope that sustained dialogue and government responsiveness will pave the way for an economic revival. Until these fundamental issues are addressed, however, Zimbabwe’s struggling currency and unsustainable debt profile will continue to weigh heavily on industry performance and investor sentiment.
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