Tourism sector to retain 100% of foreign currency earnings
Tourism players in Zimbabwe are in for exciting times as the Reserve Bank of Zimbabwe has allowed then to retain all their foreign currents earnings. Previous businesses were only allowed to keep a certain percentage in foreign currency while the rest would be converted.
The move according to the central bank is allow the sector to recapitalise after taking a huge knock from COVID-19, since March 2019. RBZ Governor John Mangudya confirmed the latest development through his Monetary Policy Statement that was released today.
‘’In order to respond to the adverse effects of COVID-19 on the tourism sector, which was hard-hit by the pandemic not only in Zimbabwe but the world over, with immediate effect, players in the tourism and hospitality industry shall retain 100% of their foreign currency earnings to allow them to quickly recapitalise and procure the necessary goods and services required by tourists and travellers,’’ he said.
Besides this new development, the tourism sector which is one of the key pillar of economic revival for the second republic is also enjoying an extended window of duty free importation of capital equipment. Besides the tourism sector, the generous hand has also been extended to tobacco and cotton farmers.
The farmers are credited for bringing foreign currency into the country every season. Mangudya said ‘’The financing models for tobacco and cotton require a refinement of the export retention threshold to increase participation by small scale growers and to boost tobacco and cotton production in the country.
‘’Accordingly, the retention threshold for tobacco and cotton growers shall be increased to 75% for the forthcoming tobacco and cotton marketing seasons. The funds retained by the growers shall continue to be treated as free funds,’’ he said.
