RBZ prioritises tobacco farmers

The Reserve Bank of Zimbabwe (RBZ) is working with banks operating at the auction floors to ensure they are well-resourced to be able to pay tobacco farmers $1 000 at the first sale.

BY BUSINESS REPORTER

John Mangudya

At the beginning of the tobacco marketing season, RBZ and tobacco associations agreed farmers should be paid $1 000 on the first sale and $500 in subsequent sales.

RBZ governor, John Mangudya told NewsDay last week the bank was monitoring the situation to ensure that farmers are not inconvenienced, as they were bringing in foreign currency.

“We are continuously monitoring the situation to ensure that tobacco farmers are not inconvenienced, as they are the goose that lays the golden egg. They are bringing value to the economy,” he said.

Mangudya’s remarks came as it emerged that many farmers were struggling to get money from the banks due to the cash crisis, which escalated last year. Farmers last week said some banks were failing to give them $1 000 and instead were offering $50 citing the cash shortages.

Tobacco is one of the biggest foreign currency earners and farmers are entitled to a 5% export incentive by virtue of growing the golden leaf. Tobacco merchants mobilised about $700 million for the marketing season which began last month.