Industry calls for 10pc export incentive

22 May, 2017 - 00:05 0 Views
Industry calls for 10pc export incentive The use of electronic payment systems will also result in de-congested banking halls

The Herald

Enacy Mapakame Business Reporter
INDUSTRY has made proposals for an upward review of the Reserve Bank of Zimbabwe’s export incentive to 10 percent from the current 5 percent as they push for more export earnings and improvement in the country’s balance of payment position.

Indications are that the RBZ has agreed in principle but has requested evidence-based proposals by exporters to support the proposed incentive hike. Chairperson of the thematic team on export capacity under the Rapid Results Approach (RRA) to ease of doing export business Mr Salie Khan said the team had already started working on data collection from exporters for a comprehensive proposal to present to the RBZ.

He added the central bank indicated interest in further incentivising exporters in line with Government’s plan to achieve an export driven economy. “Consultations with exporters are underway for evidence-based proposals for submissions to the Reserve Bank of Zimbabwe. “We need to come up with an incentive structure for recommendation to the Reserve Bank of Zimbabwe with a view to increase the 5 percent export incentive to 10 percent,” said Mr Khan at a mid-term review of the RRA on ease of doing export business in the capital recently.

The 5 percent export incentive was introduced last year as a means to boost the country’s exports and ultimately drive economic growth.

Mr Khan added exporters also engaged the RBZ to prioritise exporters in foreign currency allocations with proposal for introduction of a 25 percent export retention scheme to cover working capital requirements. “Exporters are already retaining 100 percent of their export proceeds,” said Mr Khan.

Lack of funding for retooling has been cited as one of the key impediments to industry growth and its competitiveness. Mr Khan said the thematic team had also engaged the Bankers Association of Zimbabwe on access to finance upon which bankers pledged their support for local industry.

However, local industry should meet requirements to access loans from banks. The RRA to ease of doing export business was adopted to speed up reforms that promote export growth in the country and help reduce trade deficit.

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