Growers Welcome Increased Forex Cap
The Tobacco Farmers Union of Zimbabwe (TOFUZ) has praised the government for increasing the nation’s foreign currency retention cap from 50 percent to 60 percent ahead of the 2021 tobacco selling season, reports All Africa.
Growers are now able to purchase and/or supplement their foreign exchange requirements from the auction system. The union had called for a 70 percent retention cap but noted that 60 percent was still a positive level for tobacco leaf growers.
“Though we would have wanted 70 percent forex retention for farmers, we applaud the RBZ [Reserve Bank of Zimbabwe] and the Ministry of Agriculture for the policy review, which is set to benefit farmers,” a TOFUZ spokesperson said.
This will certainly see an increase in tobacco production.
“This will certainly see an increase in tobacco production as farmers will increase hectare capacity. Our concern as a union is to see totally empowered tobacco farmers who can independently make decisions without conditions as the case with contract farming. Given that tobacco is the country’s largest single foreign currency earner after gold and it contributes much to our economic growth as a nation, tobacco farming should be promoted through supportive input loan facilities.”