RBZ pays tobacco farmers $27m

The Reserve Bank of Zimbabwe (RBZ) yesterday said it has paid $26, 6 million export incentive to farmers who sold tobacco during the 2016 marketing season.

In order to encourage tobacco farmers to increase production, as well as promote financial inclusion, the bank awarded a five percent export incentive to tobacco growers’ payable through normal banking channels.

In a statement, RBZ Governor Dr John Mangudya said during the 2016 tobacco marketing season, 66 215 tobacco growers delivered and sold the green leaf valued at $588 185 486.

“In this regard, 65 829 tobacco growers who sold tobacco worth $586 937 937 and had bank accounts, were eligible for the five percent export incentive during the 2016 tobacco marketing season.

“Accordingly, during the month of November, the bank disbursed a total of $29 346 897 to pay tobacco farmers who had submitted their banking details through the Tobacco Industry and Marketing Board,” he said.

Dr Mangudya said a total of $26 642 277, representing 90.8 percent, had so far been paid to tobacco growers through banks.

“A balance of $2 704 620, representing 9.2 percent has not yet been credited to the tobacco growers bank accounts for one or more of the following reasons – submission of invalid bank accounts information to TIMB, mismatch of account names, accounts having become dormant.”

He urged farmers to regularise their banking details ahead of the 2017 tobacco marketing season.

“The bank, in collaboration with banks, is refining the current framework to ensure that tobacco growers promptly access the five percent export incentive during the 2017 tobacco marketing season,” he said.

Tobacco is the country’s single largest export commodity, ahead of platinum and gold.

Zimbabwe exports tobacco to countries like China, South Africa, Belgium, the United Arab Emirates, Indonesia, Sudan and Russia among others. — New Ziana.