Govt Fails to Enforce ZiG Currency for Fuel Purchases, Prof. Gift Mugano Highlights Reserve Shortages
By Farai D Hove | ZimEye | The govt has announced its inability to enforce the use of the Zimbabwe Gold (ZiG) currency at fuel service stations, citing significant challenges. The official statement reveals concerns that enforcing the ZiG currency could lead to fuel shortages and a resurgence of long petrol queues across the country, a scenario that has prompted authorities to reconsider their approach.
Speaking to the National Assembly on Wednesday, Finance Minister Mthuli Ncube acknowledged the risks involved in mandating the use of ZiG for fuel purchases. He explained that while Zimbabwe urgently needs to stabilize its currency and secure fuel reserves, the enforcement of ZiG at the pumps could disrupt the already fragile fuel supply chain, potentially plunging the nation into another round of scarcity.
Prof. Gift Mugano: “Reserves Are Insufficient”
Economist Prof. Gift Mugano has reacted swiftly to the government’s announcement, emphasizing that he had previously warned about the potential pitfalls of the policy. In a statement shared on social media, Mugano questioned the government’s claim of having sufficient reserves, stating: “If there are sufficient reserves, why is GOZ afraid to enforce the use of ZiG at fuel service stations? This means that I was right when I said that the reserves are insufficient!”
Prof. Mugano has argued that without adequate gold and foreign currency reserves, the ZiG currency cannot effectively facilitate fuel purchases or stabilize the economy. He has been vocal in his critique, maintaining that the government’s inability to implement its currency policy reflects deeper economic vulnerabilities, including a lack of gold reserves and limited access to foreign exchange.
Fears of a Fuel Crisis
The government’s reluctance to implement ZiG for fuel sales stems from fears of reigniting a petrol crisis similar to those experienced in recent years. Minister Ncube indicated that the current priority is to maintain fuel availability and stability rather than pushing for a policy that might exacerbate shortages. “We need to be very careful with how we manage our fuel stocks and currency policies,” Ncube noted, adding that further consultation and planning are necessary to avoid unintended consequences.
The Path Ahead
This development has sparked renewed debate over the viability of the ZiG currency and the broader economic strategies of the government. As experts like Prof. Mugano continue to raise alarms over the state of reserves, the public and stakeholders alike are left to wonder what measures the government will take to address the nation’s ongoing economic challenges.
With no clear resolution in sight, the focus now turns to how the government plans to stabilize the fuel supply and manage the fragile currency situation without resorting to policies that could destabilize the economy further. The coming weeks will be crucial in determining whether Zimbabwe can navigate this latest challenge without triggering a broader crisis.
