Zimbabwe Crypto: Sub‑Saharan Stablecoin Series
Ndinokutambira, gentle reader! Zimbabwe is my homeland, and its economy has more plot twists than your favourite telenovela. Let’s explore why stablecoins might be our next financial act.
Vital statistics
Population (2025): ≈ 16.95 million
Median age: 18.1 years
Urban population: 37.9 % ≈ 6.43 million
GDP (nominal, 2025): US $38.17 billion
GDP (PPP, 2025): US $93.87 billion
Projected real GDP growth (2025): 6.0 %
Inflation (consumer prices, 2023): ≈ 172 %
Projected inflation (2025): ≈ 92 %
Latest y/y inflation: 85.7 % (Apr 2025)
Major industries: Mining, steel, cement, chemicals, clothing, agriculture
Local currencies: Hmmm ( - 2019), Zimbabwe dollar (2019‑), gold‑backed digital tokens (2023), ZiG gold‑backed notes (2024)
Zimbabwe’s youthful population mirrors the wider region: half are under 20, mobile penetration is high, and over 80 % of transactions are in US dollars - and that’s just the formal economy.
A roller‑coaster currency history
Once the “breadbasket” of southern Africa, Zimbabwe’s economic decline began with land reform and debt. By 2008, annual inflation hit 89.7 sextillion %. The government dropped its currency in 2009 for a multi‑currency regime, later introducing bond notes (2016) and RTGS dollars (2019).
In 2023, gold‑backed digital tokens arrived, followed in 2024 by the ZiG currency—the sixth attempt at stability in two decades—yet inflation still hovered near 86 % by April 2025.
As much as Zimbabweans love the country and our heritage, I think its safe to say that there is zero confidence in our economic stability and monetary governance. Everyone is prepared to “make a plan” and Zimbos are already used to changing their payment behaviour - often multiple times a year. In ways we have the most fluid and changeable currency ecosystem on Earth. Cash is King, Eco-cash is Queen, and many use the traditional financial system just because they have to.
Current crypto landscape
With fiat unreliable, Zimbabweans turn to stablecoins such as USDT and USDC. Google searches for “USDT” spiked in 2024, and local blogs advise using crypto as a hedge.
Use cases include:
Cross‑border remittances: Avoiding 7–8 % fees.
Peer‑to‑peer trades: Via Telegram/WhatsApp.
E‑commerce: Payments for freelancers and exporters.
Savings and Risk avoidance: protects from inflation and earns interest
Problems and pain points
Persistent inflation despite currency reforms.
Dollar scarcity & cash shortages.
High transaction costs for remittances.
Limited savings options.
Regulatory uncertainty over crypto.
How stablecoins could help
Picture my sekuru in rural Mutare selling macadamia nuts to China. The buyer pays in USDT—received instantly, swappable for USD, ZiG, or held as a hedge.
Benefits:
Store of value against currency swings.
Lower remittance costs.
Access to global markets without bank barriers.
Financial inclusion via smartphones.
It’s not just small scale business however, there’s arguably a stronger case for medium to large businesses to incorporate stablecoin into their core financial operations - particularly export heavy businesses. Take Zimbabwe’s top farm export – tobacco – like any exporter they face strict forex rules. Growers currently receive only ~70–75% of sales in USD, with the rest forcibly converted to Zimbabwe dollars (ZiG) – a policy meant to boost the local currency but which erodes earnings amid ~86% annual inflation. Stablecoins offer a workaround: a tobacco exporter paid in USDT/USDC could retain full value in digital dollars, avoiding the 30% surrender requirement (forced conversion to ZiG) and hefty bank costs (up to ~10% lost in transfer fees and exchange spreads).
That sort of cost of sales would wipe out most margins for any business and drive up costs for consumers, arguably making Zimbabwe less competitive on a global marketplace and driving Zimbabwean wages down. With USDT or USDC for example, more capital stays in the business for buying inputs, machinery, and paying workers – without waiting months for international bank wires. In fact, some Zimbabwean agribusinesses (like the Parrogate conglomerate) are already using blockchain payments to streamline cross-border trade, proving that crypto can empower large exporters, not just individuals and small traders.
A word of caution
Stablecoins aren’t magic—issuers must hold reserves, and regulation is evolving. Education on self‑custody is essential, and adoption should complement wider economic reforms.
Conclusion
Zimbabwe’s monetary history is chaotic, but its people are resourceful. Stablecoins offer a ray of hope for saving, trading, and connecting globally—without costly intermediaries.
This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research before making any investment decisions.