Zimbabwean economist Professor Gift Mugano has called on the Government to immediately repeal Statutory Instrument 218 of 2023, which sets December 31, 2030, as the expiry date for the current multi-currency regime and the official transition to a monocurrency system.
Professor Mugano argued that the core error in the Government’s de-dollarisation strategy lies in legislating a fixed deadline. He said a successful currency transition must be organic, guided by economic fundamentals rather than a legal mandate.
While acknowledging the soundness of Finance Minister Mthuli Ncube’s minimum requirements for introducing a monocurrency, Mugano stressed that the statutory deadline undermines confidence.
“The mistake GoZ made was to legislate the date for changeover to monocurrency,” he said.
“Currency matters do not require rooftop announcements but real work that enables us to meet the minimum conditions… and the switch happens naturally without anyone announcing it.”
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He cited the adoption of the US dollar in 2008–2009 — which gained traction without legislative compulsion — as the example that the ZiG should follow.
Mugano warned that maintaining a legal expiry date is creating “unnecessary risk” that is already harming the economy. He pointed to three major consequences: a credit squeeze, constrained access to external capital, and capital flight.
He argued that these pressures will eventually force the Government to extend the multi-currency regime, making the current law both futile and damaging.
Minister Ncube has maintained that the transition to a monocurrency will be gradual and market-led, anchored on macroeconomic stability and guided by a set of Conditions Precedent.
These include durable macroeconomic stability with low, single-digit inflation; sufficient foreign currency reserves of 3–6 months import cover; an efficient foreign exchange management system; a stable exchange rate; increased demand for the local currency through calibrated government payments; financial-sector stability; a secure national payments system; and strong fiscal-monetary policy cohesion.
Mugano urged the Government to concentrate on meeting these Conditions Precedent to allow the ZiG to naturally establish its value.
“This is why I find it more plausible for the GoZ to repeal SI 218 of 2023, and for all of us to put our hands on deck until our currency finds its position in the market,” he said.
Repealing SI 218/2023, he added, would align policy with the Government’s stated commitment to a market-driven transition.
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