THE export incentive scheme payable in bond notes, has generated a staggering $12,6 billion in foreign currency since inception in May 2016.
This was revealed by Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mangudya on Monday while presenting the 2018 Mid-Term Monetary Policy Statement (MPS) in Harare.
A combined $743,2 million was paid out to the exporters who generated the $12,6 billion.
The RBZ paid incentives — ranging from 2 percent to 12 percent — to exporters.
Said Dr Mangudya while fielding questions from journalists at the end of MPS presentation: “We are quite happy with the export incentive scheme. This economy is not poor; we are rich people who are only poor on the surface.
“Just to give you numbers, the exports in 2016 which we gave an incentive, were $2,99 billion. We gave an export incentive of $100 million, which will be almost 2 percent (of the generated foreign currency).
“In 2017, our export incentive was $204 million and the total export receipts were $4,6 billion. In 2018, as at September 21, the export incentive was $438 million, supporting $4,9 billion exports. The total to date, which has been supported is $12,6 billion.”
The average incentive paid out during the period under review is 5 percent.
Dr Mangudya said the impact of the export incentive has been telling, particularly in the manufacturing sector, where a number of firms had heightened exports to benefit from the scheme.
“Go to Tregers, go to Lobels Biscuits, (and) Dendairy; we are quite happy with the export incentive and I want to testify that these figures are correct to the last cent for you to consume.
“ . . . if you remove it (export incentive) today, there will be no foreign currency to Zimbabwe. Those who are exporting won’t export and your foreign currency reserves will go down, it means the foreign currency situation is going to worsen,” said Dr Mangudya.
As the export incentive gets entrenched in the economy, merchandise exports in the first half of 2018 stood at US$2,47 billion, representing a 36,5 percent increase from $1,81 billion realised over the corresponding period in 2017.
The increase was underpinned by growth in gold, platinum, chrome and tobacco exports.
Tobacco output shattered all production records in the country after hitting 250 million and generated $730,7 million in foreign currency.
Similarly, gold deliveries have been soaring, with miners hauling 20,8 tonnes up to July 31, 2018.
From 2016 to September 21, gold miners received the largest chunk of incentives, pocketing $310,6 million followed by tobacco at $153,3 million.
- Herald
