THE Reserve Bank of Zimbabwe (RBZ) has to date paid the export incentive to 80 percent of exporters through the issuance of bond notes totaling US$72,9 million. The payments also include the incentives on diaspora remittances.


In a statement, RBZ governor John Mangudya said the payments are in line with the bank's projection that US$70 million bond notes would have been issued by December 31, 2016. The major beneficiaries under the Export Incentive Scheme are tobacco growers (US$29,4 million), gold producers US$10 million and diaspora remittances US$5,4 million.


Mangudya noted that due to the scheme, a number of firms had resumed exports after ceasing to do so, due to the uncompetitive domestic economic environment that includes the high cost of production and the strong United States dollar.


RBZ governor John Mangudya said the payments are in line with the bank's projection that US$70 million bond notes would have been issued.


THE Reserve Bank of Zimbabwe (RBZ) has to date paid the export incentive to 80 percent of exporters through the issuance of bond notes totaling US$72,9 million. The payments also include the incentives on diaspora remittances.


In a statement, RBZ governor John Mangudya said the payments are in line with the bank's projection that US$70 million bond notes would have been issued by December 31, 2016. The major beneficiaries under the Export Incentive Scheme are tobacco growers (US$29,4 million), gold producers US$10 million and diaspora remittances US$5,4 million.


Mangudya noted that due to the scheme, a number of firms had resumed exports after ceasing to do so, due to the uncompetitive domestic economic environment that includes the high cost of production and the strong United States dollar.


"The Export incentive scheme came into operation at the most opportune time given that 2016 was quite turbulent and challenging for the global economy and Zimbabwe in particular. A sudden collapse in the prices of export commodities of interest to Africa including Zimbabwe, and the appreciation of the United States dollar transmitted serious negative economic shocks to the national economy that required the bank's attention.


"However against the background of these challenges which were exacerbated by the drought, a number of firms have resumed exports and productivity which is the panacea to the current economic challenges is gradually increasing."


He said this includes the expansion of the tobacco crop grown this agricultural season and the reduction in the smuggling of gold as the five percent incentive awarded to gold producers over and above the international gold price has been regulative to discourage smuggling.


The RBZ also said there had been an increase in the use of plastic money and electronic banking which now accounts for 50-70 percent of sales for most of the bigger retail outlets in Zimbabwe, including fuel dealers.


"This paradigm shift is encouraging as it has a positive effect, together with the efficient circulation of bond notes, of reducing the demand for cash within the national economy.


"This will also have a positive effect of discouraging queuing for cash at banks do not necessarily reflect lack of money in the economy but reflect the need to continuously promote the use of plastic money and electronic payments." FinX