Zimbabwe's forex rule stunts horticulture recovery, growers say
By Nyasha Chingono
HARARE, Aug 29 (Reuters) -Zimbabwe's rule requiring exporters to exchange 25% of their dollar export earnings into local currency is hampering the horticulture sector's recovery, two decades after land seizures hit output, a growers' group said on Thursday.
The southern African country is slowly restoring horticultural exports, which peaked at $140 million in 1999, before commercial agriculture was disrupted when former President Robert Mugabe championed the seizure of white-owned farms to resettle landless Blacks.
Horticultural exports have rebounded above $100 million annually, driven by fresh investments in products such as blueberries and macadamia nuts, demand for which has surged globally in recent years.
But growth is being held back by unfavourable policies such as the currency rule, as well as high borrowing costs, Zimbabwe's Horticultural Development Council (HDC) says.
Under the rule, exporters exchange 25% of their earnings for local currency at what critics say is an overvalued official rate, leading to losses in terms of a black market rate that is widely used in the economy.
Zimbabwe still uses the U.S. dollar in formal transactions after ditching its own currency in 2009 amid hyperinflation. Local currencies reintroduced since 2019 have been volatile.
"It is like a double taxation because that money is changed into local currency, but all the costs of the produce are in U.S dollars. The (production) costs are even higher than our neighbours," HDC CEO Linda Nielsen told Reuters.
The government should, instead, give farmers tax incentives to help the sector grow and meet its ambitious target for $1 billion of exports by 2030, she said.
Zimbabwe is one of the fastest growing blueberry producers globally, but the HDC says the country risks missing out on opportunities due to unfavourable economic conditions.
"We have a real opportunity for growth, but we don’t have the patient capital that is required for that growth," Nielsen said.
"The funding that was available through commercial banks is very short-term and perennial plantation crops don’t suit that funding," she added.
Reporting by Nyasha Chingono; Editing by Nelson Banya and Mark Potter
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
