Zimbabwe Prepares to Launch Digital Currency, Draws Lessons from Nigeria’s eNaira

Introduction

Zimbabwe is advancing its plans to introduce a digital currency, taking cues from the rollout of Nigeria’s eNaira. Despite the eNaira’s sluggish adoption, Zimbabwe remains committed to its CBDC initiative, with Deputy Governor Innocent Matshe emphasizing the importance of learning from Nigeria’s experience.

Lessons from Nigeria’s eNaira

The eNaira, Africa’s first CBDC, has seen limited uptake since its launch, with less than 0.5% of Nigerians using it. Zimbabwe views this as a learning opportunity rather than a deterrent. Matshe highlighted the need to address market hesitancy, which has been a significant factor in the eNaira’s slow adoption.

Preparations and Considerations

To prepare for its CBDC, Zimbabwe has sent teams to study digital currencies in countries like Ghana and China. Matshe noted that the digital currency will have unique features tailored to Zimbabwe’s economic needs. The government is also exploring options for the CBDC’s design, including whether to link it to a specific currency.

Addressing Economic Challenges

Zimbabwe’s local currency has faced significant challenges, losing over 80% of its value against the US dollar in 2022. The country hopes its CBDC will help stabilize the economy and encourage financial inclusion. Meanwhile, Nigeria is experimenting with incentives, such as discounts for drivers and passengers using the eNaira, to boost adoption.

Conclusion

Zimbabwe’s CBDC plans demonstrate its commitment to embracing digital financial systems, even as it navigates the complexities of market hesitancy and economic instability. By learning from Nigeria’s eNaira, Zimbabwe aims to create a more effective and widely accepted digital currency.