Bata calls on RBZ to hike incentive

Bata calls on RBZ to hike incentive
Published: 13 February 2018 (822 Views)
ZIMBABWE's largest shoe manufacturer, Bata Shoe Company, has called on the Reserve Bank of Zimbabwe (RBZ) to increase the export incentive to 15 percent to boost exports by local companies.

The Central Bank last year announced that it had increased export incentives from 5 percent to 12 percent for top exporters as part of efforts to boost foreign exchange generation.

The export incentive scheme was introduced in 2016 by the RBZ under a $200 million bond notes facility guaranteed by AfreximBank while another scheme amounting to $300 million was also availed.

In his 2018 monetary policy statement last week, RBZ Governor Dr John Mangudya said the export incentive scheme has enhanced competitiveness of Zimbabwe's exports and this has significantly contributed to the growth of exports which grew by 36 percent from $2.8 billion in 2016 to $3.8 billion in 2017.

Bata has been one of the companies which took advantage of the export incentive facility and has captured a significant market in the region which includes Zambia, Malawi and Botswana among others.

The company's managing director, Mr Ehsan Zaman, said the high cost of production inherent in the economy has compromised the competitiveness of local companies hence there was a need for the review of the export incentive upwards.

"We see greater opportunity in increasing the export business if we can be a bit competitive.

"We are working with the concerned authorities to get a better incentive may be up to 15 percent so that we can offer competitive prices because the cost of production here is very high.

"This ultimately affects our competitiveness against similar products from the region," he said.

Mr Zaman also appealed to Government for a speedy allocation of foreign currency to allow uninterrupted importation of critical raw materials.

He said his organisation might be forced to suspend some of its product lines should delays in forex allocation persist.

At its peak before the turn of the millennium, the company employed 5 000 people but at the height of hyperinflation, the figure drastically went down to under 500.

However, due to the improved economic climate in the country, the shoe manufacturing company has now improved on capacity utilisation levels operating at 90 percent and employing 1 200 people.



- chronicle

Tags: Bata, RBZ, Incentives,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Buyanga wants Zimbabwe in United Nations Security Council

by Staff reporter | 14 December 2018 | 65 Views

Zanu-PF urged to focus on fixing economic challenges

by Staff reporter | 14 December 2018 | 61 Views

Patient steals from nurse

by Staff reporter | 14 December 2018 | 82 Views

Banking sector posts 77% profit jump

by Staff reporter | 14 December 2018 | 67 Views

Wicknell Chivayo 'overpaid' in $5million Gwanda project

by Staff reporter | 14 December 2018 | 59 Views

'Zifa machinations' - Gift Banda arrested for 'corruption'

by Staff reporter | 14 December 2018 | 67 Views

Mphoko's son trial postponed

by Staff reporter | 14 December 2018 | 68 Views

Police probe Nkulumane carjack and robbery

by Staff reporter | 14 December 2018 | 65 Views

Suicide man announces imminent death

by Staff reporter | 14 December 2018 | 70 Views

Woman's maintenance claim thrown out

by Staff reporter | 14 December 2018 | 47 Views

SA borders brace for festive season rush

by Staff reporter | 14 December 2018 | 55 Views

BCC turns down panties display demonstration

by Staff reporter | 14 December 2018 | 68 Views

Dialogue can save Zimbabwe, says Majongwe

by Staff reporter | 14 December 2018 | 62 Views

Chamisa guns for Mudzuri

by Staff reporter | 14 December 2018 | 66 Views

Govt partially fulfils doctors' demands

by Staff reporter | 14 December 2018 | 66 Views

Zimbabwean diasporans told to feel free to come home

by Staff reporter | 14 December 2018 | 61 Views

Mnangagnwa officially opens Zanu-PF 'talk shop'

by Staff reporter | 14 December 2018 | 59 Views

VID raids fuel queues

by Staff reporter | 14 December 2018 | 40 Views

Minister in passports reality shock

by Staff reporter | 14 December 2018 | 39 Views

Armed robbers attack farmhouse, steal $25 000

by Staff reporter | 14 December 2018 | 29 Views

Storm over Biti case High Court referral

by Staff reporter | 14 December 2018 | 39 Views

Doctors take to the streets

by Staff reporter | 14 December 2018 | 34 Views

Zanu-PF wary of demos as indaba starts

by Staff reporter | 14 December 2018 | 38 Views

Mnangagwa top aide demands R5m bribe

by Staff reporter | 14 December 2018 | 41 Views

Book on preservation of Ndebele art, architecture launched

by Staff reporter | 14 December 2018 | 38 Views

Let the games begin - it's now jecha for jecha!

by Conway Tutani | 14 December 2018 | 58 Views

Mnangagwa tackles economy at Indaba

by Staff reporter | 14 December 2018 | 31 Views

Choppies insists Mphoko not majority shareholder

by Staff reporter | 14 December 2018 | 36 Views

Meikles mulls hotels sale

by Staff reporter | 14 December 2018 | 36 Views

Kenyan judge brokers Mnangagwa, Chamisa talks

by Staff reporter | 14 December 2018 | 44 Views

Oil baron targeted as Zanu-PF meets

by Staff reporter | 14 December 2018 | 34 Views

WorldRemit partners BancABC

by Staff reporter | 14 December 2018 | 37 Views

Chiyangwa blow, as audit report exposes him

by Staff reporter | 14 December 2018 | 37 Views

Zinara seeks $250m for project

by Staff reporter | 14 December 2018 | 33 Views

Mnangagwa's diplomatic offensive off the rails

by Staff reporter | 14 December 2018 | 38 Views

Moment of truth for Phillip Chiyangwa

by Staff reporter | 14 December 2018 | 64 Views

EFF declares war on MDC Alliance

by Staff Reporter | 14 December 2018 | 40 Views