The Reserve Bank of Zimbabwe (RBZ) says it will pay tobacco farmers an export incentive of 12,5 percent up from 5 percent, in a bid to spur production in the upcoming 2018 farming season.
Tobacco is the country’s third largest earner of foreign currency after Gold and Platinum.
In a joint statement on Friday, with the industry regulator, Tobacco Industry Marketing Board (TIMB), the central bank said the review was consistent with support given to other agricultural products to enhance production.
“In line with practice, the revised 12,5 percent export incentive shall be paid directly into the respective tobacco growers bank accounts on a monthly basis upon submission of sales information to the Reserve Bank by the Tobacco Industry and Marketing Board (TIMB),” the statement reads.
This year earnings from tobacco exports are projected to reach $980 million up from $933,3 million in 2016.