The Reserve Bank of Zimbabwe (RBZ) to disburse US$60m tobacco facility

Published 2021년 8월 17일

Tridge summary

The Reserve Bank of Zimbabwe is set to disburse a US$60 million tobacco facility to support growers during the upcoming season, as the government has decided to fund tobacco production locally. The Tobacco Production Localisation Revolving Fund aims to yield 60 million kilogrammes of tobacco, which is a major foreign currency earner for the country. However, concerns have been raised about the risk of defaults due to lower investment recovery rates by private merchants, who are struggling with chaotic marketing leading to side marketing and defaults.

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Original content

Source: RBZ to disburse US$60m tobacco facility | Herald (Business) Martin Kadzere-Senior Business Reporter The Reserve Bank of Zimbabwe (RBZ) is working on modalities of disbursing a US$60 million tobacco facility this year after the Government decided to start funding production of the crop using local money. The Tobacco Production Localisation Revolving Fund is meant to support growers during the forthcoming season with a yield potential of 60 million kilogrammes expected from the initial investment. This will help sustain the auction system, which has almost collapsed as the majority of farmers are now being funded by private contractors. Tobacco is one of the country’s largest foreign currency earners alongside gold and is mostly grown by small-holder farmers. “It’s work in progress, we are engaging all participating partners,” central bank governor Dr John Mangudya told our sister publication Business Weekly in an interview. Concerns have, however, been raised by industry ...

Source: Zimbabwesituation