EXCHANGE CONTROL CIRCULAR NO.

4 OF 2021
IN TERMS OF SECTION 35(1) OF THE EXCHANGE CONTROL
REGULATIONS STATUTORY INSTRUMENT 109 OF 1996

Dear Valued Client

Reference is made to a Press Statement on Incentives for Exports and Investment Growth dated 10 May
2021, issued by the Minister of Finance and Economic Development Honorable Prof Mthuli Ncube.

Subsequently, the Reserve Bank of Zimbabwe issued the Exchange Control Circular No. 4 of 2021, which
seeks to operationalize the policy measures outlined in the Minister's Statement. The main objectives of
the incentives for export and investment are to promote economic growth by driving export growth,
diversification and competitiveness.

1. INCREMENTAL EXPORT INCENTIVE SCHEME

1.1 In order to complement the country's efforts in reforming its trade system, and taking complementary
measures in other policy areas to create an environment conducive to diversifying production and exports
away from the export of unprocessed products, clients are advised that an Incremental Export Incentive
Scheme (IEIS) has been established to achieve the following objectives: -

(a) To boost productivity by firms currently engaged in exporting business, as well as encourage
companies that are not exporting, so that they may venture into the exporting business;
(b) To generate sustainable growth in exports revenue;
(c) To fine tune the policy on the export receipts retention threshold so that the benefits accrue directly
to the exporters of goods and services; and
(d) To encourage listing and participation of firms on the Victoria Falls Stock Exchange (VFSE), and the
Victoria Falls Offshore Finance Centre.

Table 1: Implementation framework for the Incremental Export Incentive Scheme

RETENTION THRESHOLDS

Export Retention Levels All Exporters Exporters Licensed Exporters Listed on the

under the Special Victoria Falls Stock

Economic Zones Exchange

Current FCA 60% 60% 60%

Retention Levels
 RETENTION THRESHOLDS

FCA Retention on 80% 100% 100%

Incremental Export

Receipts

POLICY CHANGE IMPACT ON CLIENT

INCREMENTAL EXPORT INCENTIVE SCHEME

• Table 1 shows the implementation framework for the
Incremental Export Incentive Scheme on the retention
thresholds of the export receipts
• Table 1 illustrates the retention applicable to
All Exporters; Exporters Licensed under the
Special Economic Zones, and Exporters Listed
on the Victoria Falls Exchange.

Clients are advised that the individual

exporter's monthly base export receipts

amounts have been provided to the bank and

can be provided upon request.

In cases where the client does not appear on

the list, the bank will assist in submitting an

application to the RBZ.

• Given that the majority of the exporters receive their
export proceeds through more than one Authorised Dealer,
the recommended amount of the incremental export
incentive shall be realised on the export proceeds received
during the following month/s, after assessment and
• Clients shall consolidate all their exports
proceeds from all banks and submit the
application through their preferred authorised
dealer for their incremental export incentive.

verification by Exchange Control.

GOLD TRADING ARRANGEMENTS

Clients are advised that in order to encourage gold production and deliveries to Fidelity Printers and Refiners
(FPR), gold producers who deliver gold quantities above their average monthly deliveries shall be entitled to a
retention level of 80% on the incremental portion of the Gold delivered to FPR.

Large-scale gold producers who qualify for the 80% retention threshold on the incremental portion shall also
be entitled to directly export gold equivalent to the incremental portion to enable them to secure funding in the
form of gold loans to enhance their gold production. Fidelity Printers and Refiners shall facilitate the
exportation process for the qualifying gold producers under the scheme.
• The Bank is available to assist clients who wish to access export documentation (24/7) from their premises in
submitting their applications for registration and provision of the requisite CEPECS access rights.
• We further advise that Reserve Bank Exchange Control has established an Exports Help Desk for enquiries on
export facilitation issues. The email is exports@rbz.co.zw.
• For Illustration on calculations, refer to Appendix I and Appendix II.

Appendix I

Illustration of the SOO/o FCA Retention - where the exporter is not licensed under the Special Economic Zones
(SEZ) or not listed on the Victoria Falls Stock Exchange (VFSE) or not operating in the Victoria Falls Offshore
Financial Centre (VFOFC)

i. Exporters monthly base Export

Receipts Amount =US$10,000,000

ii. Total export receipts for the month

=US$26,000,000
June 2021

iii. Incremental Export Receipts =US$26,000,000 minus US$10,000,000

Portion =US$16,000,000

iv. Treatment of the 80% FCA =80/100 X US$16,000,000

incremental Portion of Entitlement =US$12,800,00
the Export Receipts
=20/100 X US$16,000,000
20% sell to RBZ
=US$3,200,000

v. Treatment of the =60/100 X US$10,000,000

60% FCA
export receipts that are =US$6,000,000
equal or less to the 40% sell to RBZ =40/100 X US$10,000,000
Exporter’s Monthly Base
=US$4,000,000
Export Receipts
 Appendix II

Illustration of the 1 00°/o FCA Retention Incentive where the exporter is licensed under Special Economic Zones
(SEZ) or is listed on the Victoria Falls Stock Exchange (VFSE) or is operating in the Victoria Falls Offshore
Financial Centre

i. Exporters monthly base Export

Receipts Amount =US$10,000,000

ii. Total export receipts for the month

=US$26,000,000
June 2021

iii. Incremental Export Receipts =US$26,000,000 minus US$10,000,000

Portion =US$16,000,000

iv. Treatment of the 100% FCA

incremental Portion of Entitlement =US$16,000,000
the Export Receipts

v. Treatment of the 60% FCA =60/100 X US$10,000,000

export receipts that are =US$6,000,000
equal or less to the 40% sell to RBZ
=40/100 X US$10,000,000
Exporter’s Monthly Base
=US$4,000,000
Export Receipts

For more information, contact the Nedbank International Banking or Treasury teams on 0242-701636 – 52 or
the following e-mail addresses:-
Edward Chitsuwa Edwardc@nedbank.co.zw
Sibonginkosi Sipunzi SibonginkosiS@nedbank.co.zw
Dr Alfred Musarurwa Alfredm@nedbank.co.zw
Latifa Kassim latifak@nedbank.co.zw
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