By Business Reporter- A fierce power struggle is unfolding within the Zanu PF party over the performance of Zimbabwe’snew gold-backed currency, the ZiG, with some members demanding the resignation of Finance Minister Mthuli Ncube and his team.

Leading the charge is South African-based Zanu PF supporter Kudzai Mutisi, who has called for the dismissal of not only Ncube but also the Finance Ministry’s Permanent Secretary George Guvamatanga and Reserve Bank of Zimbabwe (RBZ) Governor John Mushayavanhu.

Mutisi accuses them of sabotaging the ZiG.

Launched in April 2024, the ZiG was touted by the government as a “structured currency” backed by 2.5 tonnes of gold and other minerals, including diamonds. Despite these assurances, the ZiG has steadily lost value on the parallel market, largely due to persistent foreign currency shortages.

In a post on X (formerly Twitter), Mutisi accused the Treasury and Central Bank leaders of being “the biggest saboteurs of ZiG,” describing them as “lazy and indecisive.” Mutisi stated:

“The biggest saboteurs of ZiG are at the RBZ and Ministry of Finance—very lazy and indecisive folks. Five months after introducing ZiG, they have done NOTHING to make it the preferred currency. They FAILED to do the basics; it’s not enough to say it’s ‘gold-backed’—in fact, that’s UNNECESSARY. Simple things could give ZiG a huge boost.”

Mutisi outlined several steps he believes would strengthen the currency:

1. Larger Denominations: Mutisi criticized the reluctance to introduce larger denominations, arguing that the collapse of the Zimbabwean dollar (ZWL) occurred without them. He pointed out that $100 USD notes circulate freely in Zimbabwe, filling the gap left by insufficient ZiG cash and thereby promoting the use of the US dollar instead. “Avail ENOUGH CASH!” he demanded.
2. Tax Policies: He blasted Ncube’s decision to continue taxing electronic transactions, noting that the lack of sufficient ZiG cash in circulation drives people to use US dollars to avoid punitive taxes. Mutisi urged the removal of the IMTT tax and a reduction in bank charges to promote the ZiG.
3. USD-Only Transactions: Mutisi expressed frustration that USD-only transactions have not been curbed, despite the introduction of the ZiG five months ago. He noted that the number of such transactions has actually increased.
4. Tax Collection in ZiG: He criticized the lack of enforcement in collecting taxes in ZiG, arguing that companies have no incentive to accept or seek out the currency since the Treasury is more interested in collecting USD.

Mutisi called on President Mnangagwa to replace the current leadership at the RBZ and the Ministry of Finance with more competent individuals, stating:

“… you can’t have PhD holders who fail to do basic things. These are toxic people undermining the country for their own personal interests.”

He concluded by asserting that Ncube, Guvamatanga, and Mushayavanhu know the necessary steps to promote the ZiG but are unwilling to act if it jeopardizes their personal interests.