Oliver Kazunga, Senior Enterprise Reporter
BULAWAYO-based agro-industrial agency, United Refineries Restricted (URL), says its operational effectivity has been enhanced by improved entry to foreign exchange on the official weekly International Foreign money Alternate Public sale Buying and selling System.
The Reserve Financial institution of Zimbabwe (RBZ) runs the public sale system, which was launched in June final 12 months to help the productive sector in accessing the much-needed arduous foreign money to acquire key uncooked supplies and gear.
Thus far, greater than 4 000 firms together with URL, have been allotted foreign exchange totaling US$1,968 billion by the public sale system.
In line with an inventory availed by RBZ over the weekend, of firms which have acquired the allotments, URL has between January and August this 12 months been allotted US$13,9 million up from US$6,9 million as at December 2020.
In an interview in Bulawayo URL chief govt officer, Mr Busisa Moyo, who can be the ZITF Firm board chair mentioned: “Beforehand, we have been challenged with international foreign money constraints, however now we’re getting the international foreign money.
“Bear in mind, once we get the international foreign money, we convert uncooked supplies into completed merchandise.”
Mr Moyo mentioned the native market was consuming merchandise that URL was producing and thus the economic system and downstream industries within the worth chain have been benefitting.
URL produces a variety of merchandise amongst them cooking oil, bathtub and laundry cleaning soap, mealie meal and stockfeed for livestock.
“We pray that the public sale system continues however there are different measures that we’re conscious of that Authorities is engaged on to make sure that capability utilisation within the manufacturing sector goes increased and better,” he mentioned.
“As you understand, the Confederation of Zimbabwe Industries (CZI) is concentrating on 61 % capability utilisation, our sector in the meanwhile is between 40 and 50 %.
“We want to see that 61 % goal achieved and we additionally want to see going past that into exports,” mentioned Mr Moyo.
Total, Zimbabwean export receipts for the primary eight months of the 12 months clocked US$5,09 billion towards US$3,85 billion acquired within the corresponding interval final 12 months. Mr Moyo mentioned an export-led economic system can be good for the nation at massive because it fosters industrialisation and employment creation.
“We’re pleased with the course that we’re taking. We want to see continued sustainability for stability and for growth, which would require dialog and planning as a result of we don’t wish to keep the place we’re,” he mentioned.
“We wish to develop in order that we will export into the area and different locations.”
Being an agro-industrial firm, Mr Moyo mentioned farmers have been important to URL operations and therefore the agency has engaged gamers within the agriculture below a soyabean out grower’s alliance.
This 12 months the manufacturing concern can be partaking farmers straight and enlisting and screening them for a minimal 20-hectare soyabean out grower’s alliance programme.
The agro-processor can be working with native monetary establishments reminiscent of CBZ and Agricultural Finance Firm (AFC), previously Agribank to unlock funding for its contract schemes.
In the meantime, the Reserve Financial institution has mentioned it upholds the measures pronounced within the Mid-Time period Financial Coverage Assertion in relation to clearing the international change allotment backlog of round US$175 million.
Towards this background, the financial authority has assured firms transacting on the public sale system that the backlog would have been cleared by the top of this month. — @okazunga