Source: Treasury mandates exclusive ZiG payments for local suppliers – herald
Business Reporter
TREASURY will pay all current and new local suppliers exclusively in the domestic currency, the Zimbabwe Gold, under a stringent new pricing framework designed to entrench the use of the local unit and tighten control over public spending .
Finance, Economic Development and Investment Promotion Minister 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 major policy shift 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 achieve 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,” Minister Ncube said.
Treasury confirmed that further implementation guidelines have been disseminated to ministries via Treasury Circular No. 4 of 2026 and a directive from the Procurement Regulatory Authority of Zimbabwe .
The policy forms part of broader public financial management reforms, including the rollout of an electronic Government Procurement (e-GP) system.
Authorities also signalled that preference would now be given to domestically produced goods and services .
The announcement comes amid a concerted push by monetary authorities 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 from 7 April 2026 .
While inflation has cooled to historic lows, dropping to 3, 8 percent in February, the bulk of transactions in the economy, particularly in the informal sector, are still conducted in US dollars .
Treasury’s move to force local suppliers onto the local currency is seen as a critical test of the Government’s commitment to reducing dollarisation.
The new procurement directive does not affect payments to foreign suppliers, who are expected to continue receiving payments in foreign currency.
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