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Dr Mangudya

Reserve Bank of Zimbabwe Governor, Dr John Mangudya said yesterday only 10 companies have so far applied to the central bank to be considered to get more than the set five percent export incentive that exporters are being paid. With the economy hit by a foreign currency crisis, the RBZ late last year introduced an incentive policy for exporters sees companies being paid between three and five percent of their export receipts as part of initiatives to encourage them to boost their exports and earn more foreign currency for the economy.

Boosting exports is also likely to create more job opportunities. The boost in exports is expected to address a perennial trade imbalance that has seen imports far exceeding exports. Dr Mangudya told captains of industry at the launch of the 2017 Manufacturing Sector Survey that the central bank had opened an opportunity for companies serious about boosting their exports to earn more than the five percent incentive.

“We also provided you with an export incentive scheme which we have said we can increase from five percent. So far, only 10 companies have applied to ensure that it goes up above five percent and they are exporting and they have improved their employment,” he said. As at the end of the first half of the year, the central bank had paid out $175 million in export incentives to companies across all sectors of the economy. Dr Mangudya took a swipe at the manufacturing industry for using “too much” foreign currency yet it was generating very little as less than 15 percent of the locally manufactured goods were being sold outside the country’s borders. He said the local firms were unable to penetrate local markets partly due to their pricing systems that made their products more expensive. – New Ziana.