ActionAid Zimbabwe has slammed the introduction of a new structured currency, the Zimbabwe Gold (ZiG), arguing it will not address the nation’s ongoing economic crisis.
Zimbabwe recently launched a new gold-backed currency called Zimbabwe Gold (ZiG) which will be available in denominations of quarter, half, 1, 2, 5, 10, 20, 100 and 200.
It replaces the old Zimbabwean dollar (ZW$) at a starting rate of US$1 to ZiG 13.56, according to the incoming RBZ governor John Mushayavanhu who presented the monetary policy Friday.
While the government may tout it as a solution to the current nation’s economic woes, ActionAid warns that this risks repeating the mistakes of the past.
“The introduction of the ZiG currency risks repeating the mistakes of the past. Instead of addressing the root causes of our economic challenges, it offers a temporary fix that fails to inspire confidence among Zimbabweans.
“Zimbabwe has a long history of currency instability, with various currencies introduced over the years, all promising economic revival. However, these promises have often failed to materialize, leaving Zimbabweans grappling with economic hardship,” reads the statement.
ActionAid argues that the ZiG is simply another temporary fix that won’t inspire confidence. True economic recovery, they say, requires addressing the root causes of the problems, such as corruption, mismanagement, and lack of transparency.
“We believe that true economic recovery can only be achieved through comprehensive reforms that address issues such as corruption, mismanagement, and lack of transparency,” stated the statement.
The organization calls on the government to prioritize rebuilding trust in the economy.
The order said: “ActionAid Zimbabwe calls on the government to prioritize measures that will rebuild trust in the economy. This includes fostering an environment that is conducive to investment, promoting accountability and good governance, and prioritizing the needs of ordinary Zimbabweans.
“We urge policymakers to engage in meaningful dialogue with stakeholders from all sectors of society to develop sustainable solutions that will benefit the entire nation.”
ActionAid Zimbabwe added: “As an organization dedicated to social justice and poverty eradication, ActionAid Zimbabwe remains committed to advocating for the rights and interests of the most vulnerable members of our society.
“We will continue to monitor developments related to the ZiG currency and will work tirelessly to ensure that the voices of ordinary Zimbabweans are heard, and their concerns addressed.”
