Zimbabwean exporters are expressing concern over new government measures tightening controls on foreign exchange earnings, warning that the move could stifle production, reduce foreign exchange inflows and threaten the country’s economy.
Under the revised regulations, Zimbabwean exporters are now required to surrender 70% of their foreign exchange earnings within 90 days and some key export incentives have been withdrawn. The announcement resonated with vital sectors such as mining, agriculture and manufacturing, which are already struggling with high operating costs and policy volatility.
Speaking to reporters after an exporters’ conference last week, CEO Africa Roundtable Chairman Oswell Binha described the mood as “sombre”.
“What was intended as a celebration of export milestones has become a platform to air frustrations,” Binha said. “Inconsistent policies, operational inefficiencies and now punitive foreign exchange rules are eroding our global competitiveness.”
A key sticking point is the mandatory 30% foreign earnings surrender to the Reserve Bank of Zimbabwe (RBZ) at the official exchange rate – significantly lower than the parallel market rate – which exporters say has caused significant losses.
“Most of our costs, from raw materials to logistics to wages, are in US dollars,” Binha explained. “Forcing conversions into a floating local currency undermines sustainability.”
President of the Zimbabwe National Chamber of Commerce (ZNCC), Tapiwa Karoro, raised alarms, describing the export circumstances as “complex and increasingly hostile”.
“Our members face rising costs in a dollarised environment, limited access to affordable finance and frequent unpredictable policy changes,” Karoro said. He also criticised the Willing Buyer, Willing Seller exchange system for its lack of transparency, saying many exporters were effectively locked out by the limited availability of foreign exchange.
Economist Eddie Cross was scathing in his assessment that the new framework had removed any incentives for exports.
“High power and transport costs, combined with mandatory foreign exchange deliveries, leave exporters with little reason to continue doing business,” Cross said.
However, not all analysts are against the government’s approach. Misheck Ugaro, vice president of the Zimbabwe Economic Association, defended the change.
“The priority is macroeconomic stability. The government cannot continue to subsidise inefficiency indefinitely,” Ugaro argued. “Businesses must adapt to the improving economic environment.”
Economic analyst Victor Bhoroma warned that current policies could seriously damage Zimbabwe’s export competitiveness.
“Our exporters are already burdened by energy shortages, logistics bottlenecks and foreign exchange losses. Now they are being penalised for earning foreign exchange,” Bhoroma said. He noted that regional rivals such as Zambia and South Africa offer more stable, business-friendly environments.
Despite the growing criticism, the Reserve Bank of Zimbabwe (RBZ) maintains that the measures are necessary to maintain monetary stability. The bank’s Deputy Director of Exports, Dennis Chirata, said the withdrawal of export incentives was in line with broader fiscal reforms.
“The incentives are no longer viable. We have moved out of quasi-fiscal operations and reversing course will undermine our monetary targets,” Chirata said.
Some stakeholders remain cautiously optimistic. ZimTrade board member and ZNCC vice-chair Josephine Takundwa acknowledged the challenges but emphesized recent export growth.
“Exports are always vital to the Zimbabwean economy. While the current environment is challenging, we have seen steady growth from 2023 to 2024. With coordinated reform and support, we can sustain this momentum into 2025,” Takundwa said. She called for stronger collaboration between the government, exporters and development partners to improve the trading environment.
While authorities are prioritizing currency stability and inflation control, exporters warn that productive sectors, which are vital for generating foreign exchange, are bearing the brunt. They are calling for predictable, fair policies that encourage growth rather than punish it, not subsidies.
Without such reforms, Zimbabwe risks strangling its export base at a time when it is needed most, potentially turning key foreign exchange earners into economic losers.