By A Correspondent

Respected economist and governance expert Professor Gift Mugano has accused the Zimbabwean government of misleading the public over the true strength of the newly introduced Zimbabwe Gold (ZiG) currency.

Speaking on Wednesday, Professor Mugano — Director of the Centre for African Governance & Development at Durban University of Technology — argued that the currency’s apparent stability is artificially engineered by the state through strict limitations on its usability.

“ZiG’s stability was technically bought by the Government of Zimbabwe by limiting its use,” he said. “ZiG can’t be used to pay for fuel, passports, certain taxes, and duties. The so-called stability is fake!”

Mugano further questioned the government’s reluctance to fully integrate ZiG into all sectors of the economy.

“If ZiG is stable, why is the Government afraid to use it as the mainstream currency for all transactions?” he asked.

The government launched the ZiG in April 2024 to replace the struggling Zimbabwean dollar, touting it as a gold-backed, stable alternative. However, critics like Mugano believe the currency is being shielded from real market forces — creating a misleading picture of success.

He warned that unless the currency is allowed to operate freely and transparently, confidence will remain low and the economy will continue to suffer.

Mugano’s comments come amid growing public concern over the limited acceptance of ZiG in both private and public sectors, with many citizens still relying heavily on the US dollar for essential goods and services.