Civil Servants to Receive Salaries in ZiG

By Priviledge Zviregei

Minister Mthuli Ncube has announced that civil servants in Zimbabwe will soon receive their Zimdollar component pay in the new currency ZiG. The announcement came during a parliamentary session in response to a question posed by Emakhandeni-Luveve legislator Discent Bajila, who sought clarification on civil servant salaries following the ZiG announcement.

According to Minister Ncube, the Zimdollar component of civil servants’ salaries will be paid electronically in ZiG, and this change has already been implemented. However, physical banknotes denominated in ZiG will be introduced at a later stage, as announced by the Reserve Bank of Zimbabwe (RBZ). As a result, civil servants will no longer receive cash on payday but will instead witness an increase in their bank balances, facilitating mobile transactions.

In addition to the currency change, Minister Ncube disclosed that the government is presently reviewing its decision to suspend the trading of Old Mutual and PPC on the Zimbabwe Stock Exchange. The suspension was initially imposed in 2020 due to concerns that the dual listings of these companies were undermining the country’s currency. Despite an investigation by the RBZ that found no direct involvement by the firms, the suspension has remained in effect until now.

The introduction of ZiG as a form of payment for civil servant salaries reflects the government’s commitment to tackling ongoing economic challenges and promoting stability within the country’s financial system. The transition to electronic payments and the future issuance of ZiG banknotes aim to streamline transactions and address potential cash shortages.

The successful implementation of the ZiG currency and the potential resolution of the stock exchange suspension are expected to play crucial roles in shaping Zimbabwe’s economic future.