Banks, TIMB work on export incentive

The Reserve Bank of Zimbabwe (RBZ) is working with banks and the Tobacco Industry and Marketing Board (TIMB) to refine the current framework to ensure that tobacco growers promptly access the 5% export incentive for the 2017 tobacco marketing season.

Source: Banks, TIMB work on export incentive – NewsDay Zimbabwe January 20, 2017


The fine-tuning of the framework comes as 65 829 tobacco growers from a total of 66 215, who delivered and sold the green leaf for a value of $588,18 million in 2016 have received the incentives.

The remainder (386 farmers) did not get the incentive after they submitted invalid bank account information to TIMB, a mismatch of the account names and accounts having been dormant.

In a notice on Wednesday, RBZ governor, John Mangudya said tobacco growers, who had not yet accessed the export incentive needed to contact TIMB and their respective banks to correct or regularise their banking details.

“The bank [RBZ], in collaboration with banks, is refining the current framework to ensure that tobacco growers promptly access the 5% export incentive during the 2017 tobacco marketing season,” he said.

According to statistics from RBZ, a total of $26 642 277 representing 90,8% has so far been paid to tobacco farmers through banks. Tobacco farmers are supposed to get a total of $29 347 897 through the export incentive.

Tobacco is the second most exported product in the country after gold and is part of the central bank’s overall export incentive strategy to boost exports.

The 5% export incentive was introduced last year and is guaranteed to the tune of $200 million by the African Export-Import Bank designed to grow more exports and generate foreign currency for the economy. The incentive is in the form of bond notes, which trade at par with the United States dollar.

As at December 31, bond notes worth $72,9 million were issued. The central bank has also extended the 5% incentive scheme to those in the diaspora, whose remittances are the second biggest source of liquidity.