Millers Applaud Bond Notes

THE Grain Millers Association of Zimbabwe, the representative body of the milling industry, says the planned introduction of bond notes by the Reserve Bank of Zimbabwe is timely as it will ensure convenience when grain traders buy maize.

Gran millers intend to buy about 250 000 metric tonnes of maize from local farmers at prices ranging from $300 to $350 per metric tonne."GMAZ fully subscribes to this timely and appropriate intervention in the face of cash shortage arising from the unscrupulous exportation of money," GMAZ chairman Tafadzwa Musarara said.

Bond notes will start circulating around August to nip the outflow of the US dollar which has seen Zimbabwe facing cash shortages.

The bond notes will be in $2, $5, $10 and $20 denominations and backed by a $200 million Afreximbank facility.

Millers Applaud Bond Notes

"This year, GMAZ intends to procure, direct or indirectly, 250,000 tonnes of maize from local farmers at prices ranging from $300 to $350 per tonne. This will be the highest price in the history of maize commercial farming in Zimbabwe," said Mr Musarara.

He said more than 300 buying points will be established throughout the maize growing districts across the country.

"In this regard, we believe that the introduction of bond notes will provide the requisite convenience and inject more cash in the rural and farming communities during the forthcoming 2016 maize-buying season.

"We commend the Reserve Bank for setting up the exchange management committee to, inter alia, police the foreign remittances and prioritize key imports such as wheat and maize.

"This is consistent with international best practices that call for prudent foreign exchange management to ensure that the import bill is maintained at reasonable and sustainable levels.

"The importation of flour and maize meal has not only affected the milling industry but also the local grain farming sector," said Mr Musarara.