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Forex Auction Allotment Backlog Widens

Forex Auction Allotment Backlog Widens

Industry says the foreign currency auction allotment backlog has continued to widen, a situation that has affected production.

Last month, Reserve Bank of Zimbabwe (RBZ) governor John Mangudya told the delegates at the Chamber of Mines of Zimbabwe that the backlog was at around US$156 million and authorities were addressing the situation.

Confederation of Zimbabwe Industries (CZI) president Kurai Matsheza told Business Times that the situation has worsened. Said Matsheza:

Our members are still battling forex backlog and the situation is worsening as the central bank takes between 10 weeks and 12 weeks to clear.

Before President’s [Emmerson Mnangagwa] pronouncements there was a serious backlog and the situation has worsened as the allotments before pronouncements have not been settled and some after the statements have not been settled also.

Last month, President Emmerson Mnangagwa directed the RBZ to clear the backlog by the end of May.

Matsheza added that the RBZ’s failure to settle the allotments was going to negatively affect capacity utilisation. He said:

Last year the industry’s capacity utilisation was at 56.25% but with continuous failure to settle the allotments on the auction system the manufacturing sector’s capacity utilisation is certainly going to fall significantly.

The aforementioned challenges together with fuel price increases, effects of the Russia-Ukraine war and worsening operating environment as VUCA, an acronym that reflects volatility, uncertainty, complexity and ambiguity, production is going to come down as there is no way businesses are going to continue producing the same products at the same volumes with these cost increases.

The Gross Domestic Product projections are getting less and less optimistic in terms of achieving them.

Matsheza said authorities’ failure to clear the foreign currency auction allotment backlog coupled with the Government’s recent move to suspend import duty on selected basic grocery items may result in company closures and job losses.

More: Business Times


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12 Comments

Tkt 3 days ago

It's high time Mthuli, Mangudya & Captains of industry come on one platform to debate about this issue tinzwe kuti Ari kuti aka clear anozvi taura hr pamberi peasati apuwa Mari take neari kuti haasati apuwa iye akapuwq tine akauti bufu muromo wacho
Haaa varume imi mosvota nhema dzenyu idzi nanhasi hamusati mada kuchinja, the Son Man is gonna be Angry at you
Kusanyara kwacho we're facing July apa things are affordable moti Mwari Vano fara nazvo hr izvozvo


Dhuterere 3 days ago

ko kungonyora Shona nhai @Tkt ndozvinokushaisai njere now wakunyomba vanhu vaunogarotsigira pano that shows you are confused

vanotenga zvigumwe 4 days ago

cry my beloved country.....


Asalif 4 days ago

A day before yesterday they announced that they have cleared the allotment backlog, what a shame when now companies are speaking for themselves,we talk about it here every now and then,the champions of industry and commerce should comment about the economy themselves not the ministers what do they tell us when we know that parastatals are running at a deficit some are even closed then you will be told of FDI companies like CSC the premises are now warehouses , maputi nemafreezits making companies


Esamon Mganagwa 4 days ago

Ko inga kusanyara kunoparira. Zuro uno ravaiti we've cleared the backlog... Such propaganda won't help anyone in any way....
Shiri inozongofa wani...


VYBZ KARTEL 4 days ago

Watii ?

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Jimmy *machende* 4 days ago

Mtuli ngaabve papinde Eddie


Tintin 4 days ago

I believe in freedom of speech but not foolishness of speech change your username.

Gafa 4 days ago

Kuzvinyepera Rbz recently claimed zvakarongeka kkkkk President vakati by end of May now its end of June coming Mangundya ngaadzingwe basa


Chawabvunza 4 days ago

Who is fooling who here ? Early this week RBZ issued a statement saying that it had cleared the backlog upto 30 May 2023. Today citizens are reading a different story, with a different tune altogether, from industry which says the Auction floors Allotment backlog has balooned.

WHO IS FOOLING WHO ?

NGAAPINDE HAKE CHAMISA [NHC].

[VOTE CCC FOR REAL CHANGE].


▫️ 4 days ago

Zanu inonyepesa, vanoudza vanhu zvavanoziva kuti ndozvinovafadza but pa.ground pasina chiripo...


dck 4 days ago

ko zvavayiti vakaclear wani



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