Over US$45 mil allotted to firms by RBZ

By ZBC Reporter

Zimbabwe’s re-industrialisation agenda is on track, with more than 45 million United States dollars being allotted to firms by the central bank while the local currency has maintained stability against the US dollar.

An update released after the weekly foreign exchange auction this Tuesday indicates the local currency remained unchanged at 85,50 against the greenback with more than 45 million United States dollars being allotted to companies across key sectors of the economy.

It also reveals raw materials dominated allotments at the auction followed by machinery and equipment, consumables, other electrical accessories and working capital required for use in the retooling and expansion drive.

Industrialist Dr Abel Mubango revealed the importance of stamping out firms abusing the auction, while a small scale trader, Mr Shepherd Kembo spoke on the importance of the system.

It is quite clear that those who are abusing the scarce foreign currency they got from the central bank deserves punitive measures such an element will act as a key element to facilitate discipline and enhance transparency,said Mubango.

The auction is a clear benchmark to what the economy is going through as evidenced by the rise in the production of goods and services within the country while prices continue to stabilise with inflation being reduced ,added Kembo.

A central bank report notes over 1.5 billion United States Dollars have been allotted to companies since the auction was operationalised in June last year.

It also states that the auction system has also reduced inflation from 837 percent in July last year to 106, 6 percent by June this year.