Browsing: Exports

Among Zimbabweans, there is a clear preference for the use of the United States dollar over the local currency. This is to the extent that there are some government services which cannot be accessed without United States dollars.

There are also some basic household commodities and goods that one will need to pay for using hard currency and will not be able to purchase if they have the local currency. Following on the issue of the currency crisis is the fact that exporters are already heavily burdened with operating costs in United States dollars.

Regardless of whether it is an exporter or partial exporter, 40 per cent of all export proceeds generated by Zimbabwean-based exporters must be surrendered to the central bank. This is how the central bank has been funding its auction system to allocate foreign exchange to importers.

To be fair, the surrender requirements are not uniformly or universally applied. The central bank has introduced some concessionary measures. For instance, the tourism and agricultural sectors have been exempted from all foreign exchange surrender requirements. In the mining sector, players are allowed to retain up to eighty per cent of their export proceeds and only must surrender twenty per cent of their export proceeds.

The distinctive Zimbabwe Granite is a much sought-after dimension stone in the world. The resource is considerable and there is potential for investment by both local and foreign companies.

Reports indicate that the Royal Library in Copenhagen, Denmark was built with black granite from Zimbabwe. It’s just one of many examples of how the prized stone is used around the world.

Currently, 75% of the country’s black granite is produced in Mutoko, Mashonaland East Province. Companies such as Southern Granite, Dingmao Mining, Quarrying Enterprises, Zimbabwe International Quarries, and Natural Stone Exports are in the business of Granite Value Addition.