Source: Reserve Bank of Zimbabwe signals export policy review along the path to mono-currency – herald
Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) says it will review the export surrender policy in line with progress towards a mono-currency system, offering some hope to exporters lobbying for the reduction or scrapping of the requirement.
The private sector has long pushed for a review of the policy requirement, which exporters argue constrains investment, reduces working capital and weakens Zimbabwe’s export competitiveness.
Presenting the central bank’s position to the Zimbabwe National Chamber of Commerce (ZNCC) as part of a consultative process towards the formulation of the 2026 Mid-Term Monetary Policy
Review recently, RBZ governor, Dr John Mushayavanhu, said the export surrender mechanism should not be viewed as a tax, but as a currency exchange arrangement that enables the redistribution of foreign currency across the economy while supporting reserve accumulation.
The utilisation of retained forex is 12,5 percent for Government external obligations, 12,5 percent for the Central Bank’s interbank forex market needs and five percent for reserves accumulation.
According to the central bank, the retention ratio will be reviewed in line with market developments towards a mono-currency.
Zimbabwe’s mono-currency framework replaces the previous rigid 2030 de-dollarisation deadline with an adaptive, conditions-based transition centred on the gold-backed ZiG.
Under the current framework, exporters retain 70 percent of their foreign currency earnings, while 30 percent is compulsorily surrendered to the central bank in exchange for the local currency.
In his 2026 Monetary Policy Statement presented earlier this year, Dr Mushayavanhu said to ensure continued stability in the foreign exchange market, the retention threshold for exporters will be maintained at 70 percent.
The policy was revised from the previous 75 percent retention threshold as authorities sought to strengthen reserves backing the ZiG, support the interbank foreign exchange market and improve foreign currency flows to key economic sectors.
Proceeds from export liquidations continue to play an essential role in liquifying the WBWS interbank market, as well as facilitating the continued strategic accumulation of foreign exchange reserves to back ZiG.
According to the RBZ, the surrendered foreign currency plays a strategic role in financing imports for sectors that do not generate export earnings, but remain vital to economic activity.
These include fuel imports, essential medicines and industrial raw materials required by manufacturers.
“The retention ratio will be reviewed in line with market developments towards a mono-currency,” said Dr Mushayavanhu.
“Export surrender requirements themselves are critical for redistributing foreign currency in this multi-currency environment, so that there is an assurance of availability of foreign currency for critical imports.
“It is key that we realise that some of these imports are needed in sectors that do not generate foreign currency, therefore need for redistribution.”
Industry has maintained that the current surrender requirement remains excessive and undermines export-led growth.
ZNCC recently argued that the 30 percent retention threshold is set too high and recommended a gradual reduction in surrender requirements as the country’s foreign exchange reserves strengthen.
The business lobby group called for more predictable settlement mechanisms to improve business planning and investor confidence.
ZNCC principal economist, Mr Jephias Makiwa, said reducing export surrender requirements would allow exporters to meet key obligations like working capital and improve competitiveness.
“The chamber’s position is that lower export surrender requirements would allow exporters to retain a larger share of their foreign currency earnings for reinvestment, working capital and meeting foreign currency obligations, including paying for labour and electricity tariffs,” he said.
“Greater retention improves competitiveness, supports expansion and strengthens incentives to produce for export markets, while safeguarding against payment delays on the part of the Government.
“At the same time, we recognise that the RBZ has legitimate monetary policy objectives. Surrender requirements provide foreign currency needed to support the WBWS foreign exchange market, build forex reserves and maintain exchange rate stability.
“The discussion was, therefore, not about eliminating surrender requirements, but about finding an appropriate balance between supporting exporters, maintaining macroeconomic stability and catering to the import requirements.”
The ultimate objective should be to create an environment where exporters are encouraged to increase production and exports while preserving the stability that has been achieved over the past two years, said Mr Makiwa.
“Presently, the focus for the majority of domestic producers is primarily on the domestic market serving miners,” he said.
Exporters have consistently advocated for a compulsory surrender requirement, arguing that such a move would unlock additional investment, improve liquidity and enhance competitiveness.
The horticulture sector has emerged as one of the strongest voices calling for policy reform.
The Horticulture Development Council (HDC) recently highlighted that the compulsory liquidation requirement continues to erode producers’ working capital, limiting their ability to reinvest and compete in increasingly competitive global fresh produce markets.
HDC chief executive officer, Mrs Linda Nielsen, said the current policy could slow expansion in one of Zimbabwe’s fastest-growing export industries.
“The retention of the 30 percent liquidation requirement on export proceeds remains a serious concern for the horticulture sector. Easing the surrender requirement would help protect sectoral growth, encourage formalisation and strengthen Zimbabwe’s export competitiveness,” said Mrs Nielsen.
The debate comes as the RBZ maintains a tight monetary policy stance aimed at preserving exchange rate stability, containing inflation and safeguarding confidence in the ZiG.
Industry players are increasingly calling for targeted relief measures that support productive export sectors without compromising macroeconomic stability, arguing that a gradual reduction in surrender requirements could strike a balance between strengthening reserves and promoting export growth.
The RBZ’s indication that the retention ratio will be reviewed as Zimbabwe advances towards a mono-currency regime is likely to be closely watched by exporters, who view lower surrender requirements as a key policy reform needed to boost investment, production and foreign currency generation.
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