HARARE – National Foods, Zimbabwe’s largest food manufacturer, has raised concerns over the limited market acceptance of the Zimbabwe Gold (ZiG) currency, citing severe liquidity constraints and challenges in accessing key commodities with the local currency.
In a statement, the company pointed out that market liquidity, including access to local debt facilities and foreign exchange through the Willing Buyer, Willing Seller platform, remains significantly restricted. This has impacted the company’s ability to efficiently transact using ZiG.
“The market remains limited in its ability to transact with the ZiG, with many key commodities such as fuel, power, raw materials, as well as human capital and certain statutory payments, mostly requiring settlement in USD,” National Foods noted.
The company’s concerns reflect broader challenges in the economy, where the majority of essential goods and services, particularly in critical sectors, continue to demand payment in foreign currency, despite the introduction of ZiG earlier this year.
As the Zimbabwean government pushes for broader adoption of the ZiG, businesses like National Foods are emphasizing the need for improved market liquidity and greater flexibility in currency transactions to ensure smooth operations in the manufacturing and other sectors.