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<p>Tobacco Association of Zimbabwe president Mr George Seremwe told Sunday Mail that the central bank has since said tobacco farmers will get to keep 50% of their earnings.</p>
<p>This comes after the Reserve Bank of Zimbabwe last Tuesday reneged on a promise to pay tobacco farmers 50% of their sale proceeds in foreign currency. As a result farmers were reluctant to sale their produce. Said Seremwe:</p>
<blockquote><p>Basically prices had been our biggest problem, they were disappointingly low. Also payment modalities were not clear to farmers and buyers were not participating for reasons known to themselves. But I’m told the merchants issues was resolved. Also the Reserve Bank of Zimbabwe has since said farmers will get half their income in United States Dollars and the other part in RTGS$.</p></blockquote>
<p>More: <a href="https://www.sundaymail.co.zw/good-news-for-tobacco-farmers">Sunday Mail</a></p>


Pindula News

Tobacco Farmers To Get 50% In US Dollars

<p>Parliament has summoned Finance and Agriculture ministers to clarify why government has gone back on promises to allow tobacco farmers to keep 50 percent foreign currency from their produce.</p>
<p>This comes after the Reserve Bank of Zimbabwe reneged on promises this year to pay growers 50% in foreign currency and the remaining 50% in RTGS dollars. The announcement was made when the market opened. The farmers were urged to write letters requesting that 50% be converted into foreign currency. Speaking in parliament on Thursday, Wedza North legislator David Musabayana requested that Finance Minister Mthuli Ncube and Agriculture Minister Perrance Shiri come to parliament to explain why Government is paying tobacco farmers in RTGS dollars only. Said Musabayana:</p>
<blockquote><p>I am requesting the Minister of Finance and Economic Development Honourable Professor Ncube to come and give a Ministerial Statement with regards to why he went back on his word on the promises that he had made to the farmers. In the same, vein I am also requesting the Minister of Lands, Agriculture, Water, Climate and Rural Development to come with a Ministerial Statement in terms of how the prices of tobacco have gone down, whether he has carried out an investigation or if he is going to put any measures in place to ensure that farmers will not lose the money to be earned from their tobacco.</p></blockquote>
<hr/>
<h4><strong>Related:</strong></h4>
<ul>
<li>
<h3 class="entry-title"><a href="https://news.pindula.co.zw/2019/03/21/watch-tobbaco-farmer-threatens-to-burn-her-harvest/" rel="bookmark"><strong>WATCH: Tobbaco Farmer Threatens To Burn Her Harvest Over RTGS$ Payment</strong></a></h3>
</li>
<li>
<h3 class="entry-title"><strong><a href="https://news.pindula.co.zw/2019/03/22/rbz-timb-statement-on-payment-modalities-for-tobacco-farmers/" rel="bookmark">RBZ &amp; TIMB Statement On Payment Modalities For Tobacco Farmers</a></strong></h3>
</li>
<li>
<h3 class="entry-title"><strong><a href="https://news.pindula.co.zw/2019/03/22/pay-tobacco-farmers-in-us-dollars-zctu/" rel="bookmark">Pay Tobacco Farmers In US Dollars – ZCTU</a></strong></h3>
</li>
<li>
<h3 class="entry-title"><strong><a href="https://news.pindula.co.zw/2019/03/21/rbz-dupes-tobacco-farmers-as-it-suddenly-changes-payment-method/" rel="bookmark">RBZ Dupes Tobacco Farmers As It Suddenly Changes Payment Method</a></strong></h3>
</li>
<li>
<h3 class="entry-title"><strong><a href="https://news.pindula.co.zw/2019/03/17/tobacco-farmers-to-be-paid-50-in-us-dollars/" rel="bookmark">Tobacco Farmers To Be Paid 50% Earnings In US Dollars</a></strong></h3>
</li>
</ul>
<hr/>
<p>More: <a href="https://www.newzimbabwe.com/parly-summons-ministers-to-explain-tobacco-sales-muddle/">NewZimbabwe.com</a></p>


Ministers Summoned To Explain Why Govt Is Paying Tobacco Farmers RTGS Dollars

<p>The Reserve Bank of Zimbabwe will allow exporters to keep part of their export proceeds, before compulsory conversion to local currency, for periods longer than the prescribed 30 days in exceptional circumstances.</p>
<p>RBZ governor John Mangudya indicated in the 2019 Monetary Policy Statement that exporters would be allowed to retain a prescribed percentage of their export proceeds in hard currency for only 30 days. Mangudya said after the 30 day period the unused funds will be released onto the market at the prevailing exchange rate. Said Mangudya:</p>
<blockquote><p>Companies will not be constrained (by the compulsory conversion to RTGS dollars) because there is an exchange control authority that is given to those people who are genuine. Where there are exceptions, they (exporters) are given that exchange control authority/ approval. Just like CD1 forms (acquittal), we say people (exporters) must acquit in 90 days, but others don’t submit within that period because of certain challenges. The exporters know that there is a law (providing for that).</p></blockquote>
<p>More: <a href="https://www.herald.co.zw/exporters-to-keep-part-of-export-proceeds/">Herald</a></p>


Exporters Can Keep Part Of Proceeds Past 30 Days

<p>Tendai Biti has said that he hopes big firms such as Zimplats will take Government over the export retention scheme.</p>
<p>He said the export retention scheme is unconstitutional as it violates Section 305 of the Constitution of Zimbabwe. He said Government has not liberalised the economy since it has retained control of foreign currency. Said Biti:</p>
<blockquote><p>Dishonesty number two is that there are still maintaining the export retention scheme. That means that huge exporters like Zimplats, the mining houses, tobacco farmers they still have their foreign currency being taken by the Government. But surely if you have liberalised then you must allow those companies to keep their foreign currency so that the excess will go on the auction market so that people can buy including the Government. But you cannot retain control and then at the same time pretend that you have liberalised. You have not liberalised. Once you liberalise, liberalise both the supply and the demand. So you can’t liberalise demand-auction but supply-the exporters; you are taking their money, you are nationalising their money. And I hope that the big companies the Zimplats of this world will for the first time have the courage to go to their lawyers and approach the High Court, approach the Constitutional Court because this abnormality should not continue. As I have said before the RBZ’s retention of export earnings is unconstitutional because any money collected should go to the Consolidated Revenue Fund, should go to Parliament for accountability. Therefore Parliament should distribute it in the budget in terms of Section 305 of the Constitution of Zimbabwe. So the Constitution is being broken.</p></blockquote>
<p> </p>


Biti Urges Firms To Take RBZ To Court Over Export Retention Scheme