adminKiyapili Sibanda, Business Reporter
COTTON farmers have applauded the Government’s decision to extend the five percent export incentive to their sector saying the move would result in increased output.
The Reserve Bank of Zimbabwe (RBZ) is giving a five percent incentive bonus to all exporters under the bond notes facility as part of measures to incentivise productivity in the economy and increase export receipts.
Tobacco farmers and the mining sector are already enjoying the fruits of improved exports since the introduction of bond notes last November.
Zimbabwe Confederation of Farmers Union (ZCFU) director Mr Jeremiah Tevera said the five percent bonus to cotton growers was a morale booster.
“This is a welcome development in the sector but I think the incentive must be reviewed upwards to about 10 percent so as to stimulate the business,” Mr Tevera said.
“We would want this incentive to be given on time for farmers to prepare for next season not at the end of the season as this affects the farmers. For cotton farmers payment can be made around August and for tobacco growers it must be made as soon as the tobacco floor is pronounced closed.”
The central bank recently disbursed $29.9 million as an export incentive to tobacco farmers through the formal banking system. About $10 million has also been released to gold producers. Farmers have vowed to double output given the support they received from the Government in the form of inputs. Cotton is a strategic crop given its impact on the economic value chain.
The Government is also considering reviewing the five percent export incentive in favour of value addition with a proposal to increase the incentive up to 10 percent for exporting manufacturers.
derick.khumalo