Exporters will now have to pay Zesa in foreign currency,
the Reserve Bank of Zimbabwe (RBZ) ordered yesterday in a statutory instrument,
and Zesa can only use that foreign currency to pay for electricity imports,
spare parts or critical equipment, foreign loan repayments and foeign insurance
premiums.
Even exporters that export less than 80 percent of their
output will still have to pay 35 percent of their electricity bills in foreign
currency, although they can pay the whole lot in forex if they want to and the
Zimbabwe Energy Regulatory Authority and the RBZ have to approve.
Zesa has to keep all these payments in a special foreign
currency account, which is strictly limited and used for the four approved
purposes, and must in any case have written approval from the RBZ to spend even
one US dollar.
The new regulations are contained in Statutory Instrument
249 of 2019, titled Exchange Control (Payment for Electricity and Related
Services in Foreign Currency by Exporters and Partial Exporters) Order, 2019.
SI249 was made in terms of the Exchange Control
Regulations, 1996, and had the approval of the Minister of Finance and Economic
Development.
While the statutory instrument mentions US dollar and Euros
by name it says any other foreign currency can be used. All forex payments must
be made from the nostro account holding retained export earnings or from a
foreign currency account containing free funds. This, in effect, bars companies
from using black market funds.
The combined nostro accounts of all exporters have reached
very high levels as account holders are reluctant to sell on the interbank
market for as long as possible but this statutory instrument should help to
ensure more of those retained earnings are used as well as helping Zesa access
the foreign currency it needs for legitimate approved payments.
While partial exporters must pay 35 percent of their bills
in forex, they can pay the whole bill in forex, but in that case there must be
a contract or memorandum of agreement and that has to be submitted to Zera and
the RBZ prior to implementation. The same need for advance approval of a
contract is required where a customer wants to pay in forex in advance.
The regulations are valid for six months from yesterday
unless earlier renewed for another period not exceeding six months. Herald
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