Reserve Bank of Zimbabwe (RBZ) Governor, Dr John Mangudya has said cotton growers shall be paid an export incentive of 10% in a press release on the 2018 cotton marketing and financing arrangements.
Export incentives are given to exporters to encourage as a way of encouraging the exportation of goods to bring in the much needed foreign currency.
“Cotton growers shall be paid an export incentive of 10%, which shall be paid on a monthly basis through bank accounts or Mobile Money Services,” Mangudya says.
“In this regard, cotton merchants shall submit to Reserve Bank, the list of growers and their respective account details every month by the 7th of the month following the one for which the incentive is being claimed.”
Mangudya in the press release also said seed cotton shall continue to be purchased using offshore lines of credit.
“In this regard, cotton merchants are required to secure offshore lines of credit prior to purchasing seed cotton,” the RBZ Governor said.
“For avoidance of doubt, only those cotton merchants who were financed by Government, and those who financed cotton production using their own resources shall buy seed cotton.”
The 2018 cotton selling season is expected to start this week although reports of delivery and transaction were being reported last week.
RBZ also said cotton growers will get a maximum of $40 per each bale in cash as liquidity challenges persist in the country.
“In line with international best practices and the need to promote the use of plastic money, cotton growers shall be paid in cash, a maximum of $40 per each bale sold, with the balance being deposited into the grower’s bank account or Mobile Wallet Account,” Mangudya said.
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