Stanbic Bank announced on Monday that it is increasing its support to exporters by offering them 60% of working capital to satisfy their capital needs.
Stanbic’s move is partly a response to the concerns that exporters expressed earlier this year in February concerning their struggle to access export facilities and which in turn is strangling the growth of their exports. Stanbic head of personal and business banking, Patson Mahachi said:
A few players in industries such as horticulture, hides and skin exporters closed shop as they struggled to acquire the required capital to fund their ventures, yet there is a great market out there. Exporters are free to come and engage us for potential support as we can do more for this niche sector.
How will Stanbic help?
Under the facility, Stanbic will advance over 60% working capital to exporters who have been proven as credit worthy on the back of confirmed export invoices for the purpose of supporting immediate working capital requirements pending receipt of proceeds. Companies who are into exports such as horticulture, floriculture, citrus, macadamia nuts and oils, hides and skins, manufacturers and services among other sectors can access the facility.
RBZ has in the past come up with measures to stimulate exports such as the enhanced export incentive scheme for horticulture but unidentified banks are alleged to be reluctant to disburse the funds.
The 5% percent export incentive scheme introduced in 2016 for exporters has since been increased to 12.5 percent for top Zimbabwe exporters to increase exports.
Funded through bond notes, the export incentives were introduced as a way to boost foreign exchange generation in the economy. But no tangible result of an increase in foreign currency in Zimbabwe has been realized since the export incentive was introduced as the cash and foreign currency shortages are continuously becoming worse.
The Reserve Bank of Zimbabwe (RBZ) is the central bank of Zimbabwe. Its offices are located at number 80 Samora Machel Avenue in Harare. The Reserve Bank of Zimbabwe operates under the Reserve Bank of Zimbabwe Act, Chapter 22: 15 of 1964. The Act provides... Read More About RBZ