Exploration of Conditions Necessary for Successful De-Dollarisation in Zimbabwe

Abstract

The study aimed to explore the conditions necessary for successful de-dollarisation in Zimbabwe. A mixed-method research design was employed, with exploratory research and case studies applied. A target population of policymakers, business leaders, financial sector experts, and the general public was identified for the research. The study was conducted in Harare, Zimbabwe, using a sample of 80 respondents. Data collection tools included questionnaires shared via Google Forms. The data was analysed in Statistical Package for the Social Sciences (SPSS) software, focusing on descriptive statistics, correlation, regression, and factor analysis. The study identified macroeconomic stability, supportive regulations, and a stable domestic currency as the most critical conditions for de-dollarisation. Public trust and confidence were identified as the most crucial challenge to be addressed for successful de-dollarisation. Domestic industry stimulation was identified as the biggest opportunity in the de-dollarisation process. The research therefore recommended that in addition to pursuing macroeconomic stabilisation programs, Zimbabwean Government and Monetary Authorities should strive to restore public trust and confidence in the de-dollarisation process and also enact supportive regulations, including those that boost demand for local currency.

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