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Dr John Mangudya

Oliver Kazunga, Senior Business Reporter
COMPANIES will this week start drawing down the $600 million nostro stabilisation facility that the Reserve Bank of Zimbabwe (RBZ) successfully negotiated from the African Export Import Bank.

In the 2017 mid-term monetary policy statement presented last month, Central Bank Governor Dr John Mangudya said the nostro stabilisation facility was meant to deal with ongoing delays in the processing of foreign payments by banks.

Dr Mangudya said the RBZ does not set how much will be drawn down from the $600 million facility as that would be dependent on the amounts companies’ require for foreign payments.

“As announced in the mid-term monetary policy statement, exporters will start drawing down the $600 million nostro stabilisation facility mid-September, which is next week,” he said in an interview last week.

“RBZ does not peg the amount to be drawn down but that will be in accordance with the amounts required by various companies to settle foreign payments.”

Of late, concerns have been raised by the manufacturing sector that delays in foreign payments for imported raw materials were derailing the competitiveness efforts of local industries.

Against this background, the manufacturers through their representative body, the Confederation of Zimbabwe Industries, have urged the RBZ to prioritise the productive sectors in the allocation of foreign currency.

It is envisaged that the nostro stabilisation facility would ensure the revival of firms and that critical imports of fuel and electricity are assured.

In addition, the fund will seal the foreign currency inflow gap caused due to the closure of the tobacco selling season.

Tobacco is Zimbabwe’s single major foreign currency earner.

Turning to export figures, Dr Mangudya said the volumes have increased by 17 percent in the first seven months of the year.

“Our exports have increased by 17 percent as at the end of August due to the five percent export incentive scheme.

“Companies are also implementing strategies to increase their production capacities leading to improved performance of the exporter sector,” he said, adding that low export volumes were not sustainable to the growth and development of Zimbabwe’s economy.