After much delays due to drought and clashes between farmers and the TIMB and RBZ, the tobacco selling season seems to be just around the corner. In preparation for it, the RBZ has published the payment arrangements that will be in effect during this year’s season.
This will no go down well with farmers
Just like last year, tobacco farmers will be paid only half of their proceeds in foreign currency. The remainder will be paid in the volatile and much-loathed Zimbabwean dollar. If farmers want cash they will be paid up to $2 000 bond notes which, given the real market rate is paltry and equates to less than $100 USD.
50% of the proceeds in foreign currency will be deposited into FCA accounts and held as free funds. This means that farmers can keep the money in those accounts but will unlikely be able to withdraw cash as most banks have restrictions.
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