THE Tobacco Industry and Marketing Board (TIMB) has engaged the Reserve Bank of Zimbabwe (RBZ) to perfect the new payment system requiring farmers to open bank accounts for them to be paid for tobacco sold.
BY TARISAI MANDIZHA
Under the previous system, farmers were paid using cheques, which they would cash in at banks.
In emailed responses to NewsDay, TIMB public relations officer, Isheunesu Moyo ruled out a return to the old system, but said they were in the process of perfecting the new system.
“There is no reason to abandon a more beneficial system and revert to an old one. What we are working on as the Tobacco Industry and Marketing Board is improving the new system, whose advantages far outweigh the few challenges we have encountered. We are engaging the Reserve Bank of Zimbabwe in trying to perfect the system,” he said.
Moyo’s remarks come as it emerged the new system meant that farmers have to wait for at least three days to be paid. It has also created challenges after banks ran out of cash. The cash situation has since been addressed.
In announcing the new payment plan, RBZ and TIMB said it was meant to enhance financial inclusion. The country is expected to record a 20% decline in tobacco output this year from 198 million kg produced in 2015.
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Tobacco sales are expected to inject fresh liquidity into the economy.
Meanwhile, TIMB statistics showed that 11,2 million kg of tobacco have been sold at the auction and contract systems as of Wednesday, up 89% from the 6,46 million kg sold during the same period last year.
The tobacco sold was valued at $27,3 million up from $14,46 million recorded during the comparable period in 2015.
The average price was $2,44 per kg from $2,24 in 2015.
