The 215 million kilogrammes of tobacco projected to be realised during the 2017 tobacco marketing season will go a long way in boosting the foreign currency situation.
Zimbabwe is projecting a 12 percent growth for the agricultural sector to be driven by high output from major crops such as maize, cotton and tobacco.
With 2017 tobacco marketing season set to commence, treasury is convinced the projected 215 million kilogrammes will help improve the foreign currency situation.
Finance and Economic Development Minister Cde Patrick Chinamasa said the introduction of the export incentive scheme financed through bond notes has had a positive impact on the production of tobacco and has expressed optimism of improved earnings in 2017 from the sub-sector.
During the first two months of the year, most local producers reported challenges in payments to foreign suppliers due to limited foreign currency resources.
The country’s apex bank the Reserve Bank of Zimbabwe was compelled to avail a US$70 million nostro stabilisation facility to augment the foreign exchange resources in the banks’ nostro accounts, whilst awaiting the opening of the tobacco selling season.
The golden leaf has remained the country’s major foreign currency earner with earnings reaching nearly US$1 billion last year.