THE Reserve Bank Of Zimbabwe (RBZ) has engaged the Zimbabwe Investment Authority (ZIA) to push for the implementation of approved investments amid revelations that most projects never take off.
This comes after ZIA approved 157 projects investments worth US$1 billion in 2014, with most of them remaining pie in the sky due to a myriad of setbacks.
RBZ director of exchange control Morris Mpofu said the central bank has moved to push for the execution of approved projects.
“We have engaged the Zimbabwe Investment Authority as the Reserve Bank of Zimbabwe, where we have asked them to work together on the approvals to try to effectively follow up on implementations of those investments and account for the money that is supposed to be injected as equity those loans into those companies that are being established by these investment proposal. ZIA is yet to come back with the work plan as soon as possible,” Mpofu said.
He said the Attorney General’s office was dealing with the soon to be gazetted Exchange Control Statutory Instrument that will consolidate exchange control guidelines in a manner that conforms with the multicurrency system.
He added that RBZ has decentralised the administration of cross border transactions so as to build capacity and create a convenient environment for businesses.
“Exchange control is now linked to banks online and on a real time basis to account for cross border transactions to allow the RBZ to effectively monitor foreign currency receipts and payments. We have moved digital let me say,” said Mpofu.
The central bank is currently receiving numerous applications of prospective money transfer agencies to add on to the 35 to enhance competition and consequently reduce costs in the market.
This move is also meant to increase international remittance flows in the country.
According to treasury, diaspora remittances are projected to decrease by 6% from US$890 million in 2014 to US$840 million in 2015 due to the projected slowdown of the South African economy, where many migrant Zimbabweans are working.