The National Railways of Zimbabwe (NRZ) has been granted permission by the Central Bank to charge in foreign currency for goods exported under the Cost, Insurance and Freight (CIF) conditions.
In 2019, NRZ appealed to the Reserve Bank of Zimbabwe (RBZ) and the Ministry of Finance and Economic Development to be allowed to charge for its services in foreign currency.
In its response to the NRZ appeal, the RBZ on 31 December 2019 agreed in principle for the parastatal to charge its services under the CIF basis. The RBZ said:
Please kindly note that in terms of the current Exchange Control administrative arrangements, where a transporter has shipped goods under the Cost, Insurance and Freight (CIF) basis; the respective transport or railage portion may be received by the transporter in foreign currency.
Under the circumstances highlighted, National Railways of Zimbabwe may receive such portion of railage charges in foreign currency.
Kindly, therefore, submit a specific application through your Authorised Dealers to have the necessary Exchange Control administrative structure for this arrangement to be operationalised.
The development was welcomed by NRZ Board chairperson Advocate Martin Dinha, who said it will enable the company to improve its finances to capacitate its business as well as import essential spare parts.