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Reserve Bank of Zimbabwe (RBZ)

Business Reporter

FOREIGN airlines operating in Zimbabwe said they will accept bond notes as payment after the Reserve Bank assured them that it will facilitate repatriation of receipts in US dollars. Board of airline representatives’ chairperson and newly elected Zimbabwe Council for Tourism vice president Ms Winnie Muchanyuka said the airlines engaged the Reserve Bank of Zimbabwe following concerns by industry on the practicability of bond notes usage.The Government is introducing bond notes, as an export incentive as well as a measure to address cash shortages that have been going on for the greater part of this year. The bond notes will be at par with the US dollar, but will only be acceptable as legal tender in Zimbabwe. Ms Muchanyuka said the central bank assured the airlines that it would facilitate the repatriation of their receipts in the United State dollars to their respective head offices

“Obviously there have been some concerns, from an IATA (International Air Transport Association) perspective to say how this is going to work. The fundamental thing for airlines is the ability to repatriate the funds to the head offices,” she said at the ZCT briefing in the capital yesterday.

“But we have received assurances from the Reserve Bank that we need not worry about repatriating funds for foreign airlines to the head offices as the central bank will be able to facilitate that.

“So for now airlines will be able to accept bond notes. But it is obviously dependent on the commitment by the Reserve Bank of Zimbabwe to facilitate that repatriation.”

She said the RBZ’s commitment was enough assurance for a possible smooth flow of business in the sector and chided at fears tourists would shun the destination Zimbabwe.

“If the repatriations are happening, then there is no reason for us to worry,” she said.

ZCT president Mr Tich Hwingwiri concurred that overall, the sector had raised questions on bond notes, for instance how much will be in circulation, tradability and parity with the USD. He indicated the sector was cognizant of the challenging economic environment currently prevailing. But, as the ZCT prospects were high in the sector following Government’s initiatives in enhancing ease of doing business.

Within the ZCT, the immediate objective of the new president and vice presidents would be strengthening of the ZCT’s infrastructure, enhance effectiveness of the association and develop a formula to resolve sector challenges.

“Our focus in the coming year will be on creation of an enabling environment for travel and tourism operations in Zimbabwe, one in which operators will find opportunity and success,” he said.