Chronicle Editor
Michael Magoronga, Midlands Correspondent
THE Reserve Bank of Zimbabwe (RBZ) remains committed to increasing export receipts and has introduced a raft of measures to assist value chains of the production sector with the aim of boosting foreign currency earnings.
Exports contribute 65 percent to foreign currency earnings, while diaspora remittances and external loans contribute 20 percent and 10 percent respectively. However, Foreign Direct Investment remains lower.
Speaking during a ZimTrade organised Export Awareness Seminar in Kwekwe on Friday, RBZ principal export analyst, Ms Unnah Chisango said the apex bank continues to emphasise on more production for more exports.
“As a transformative and responsive central bank, the institution continues to come up with measures aimed at improving the ease of doing business to foster production and exports.
“Recently RBZ introduced a five percent export incentive on export proceeds receipts to improve on the competitiveness of exports on regional and international market,” said Ms Chisango.
In 2016, following a dip in the country’s exports receipts, the RBZ introduced a $200 million and $300 million export incentive schemes.
Ms Chisango said the RBZ has also introduced a number of measures to reduce time taken in processing exports documentation like the Data Management System, which allows manufacturers to process paperwork online, reduction of CD1 forms processing fee by 50 percent and giving commercial banks the green light to increase lending to productive sectors among other measures.
“We have also managed to reduce interest rates from 22 percent in 2015 to around 12 percent in 2018. But I should emphasise on the need to produce more in order to expand the export base to increase liquidity base and pay foreign currency obligations and national debt,” she said.
Speaking during the same meeting, Standards Association of Zimbabwe head of marketing and business development, Mr Godfrey Dube implored manufacturers to produce competitive goods that are competitive on the international market.
“Let us make the world our market, but if we do not make quality goods then we are shooting ourselves in the foot. Government should introduce measures that support the industries to enhance competitiveness within the production industry,” said Mr Dube.
ZimTrade regional manager Mr Similo Nkala said there was so much potential for Zimbabwean manufacturers in the world market.
“We need to meet regularly with manufacturers and horticulturalists to update them on current funding facilities that are available for them to retool to be able to compete in the international market which we could dominate,” he said.
The seminar was part of nationwide tour by ZimTrade targeting existing and potential exporters in various sectors, equipping and updating on latest global market trends. Representatives from the manufacturing industry, horticulturalists, farmers and businesspeople from across the province attended the seminar.
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