Zimbabwe: Millers Hail RBZ's High Auction's Productivity Allotments

24 February 2021

Grain Millers Association of Zimbabwe (GMAZ) has hailed the Reserve Bank of Zimbabwe (RBZ) recently announced Monetary Policy Statement (MPS) for taking a direction which contributes towards staple food pricing stability in the long term.

Last week, RBZ delivered an MPS under the theme; "Staying on course in fostering price and financial system stability", which emphasised on the need to maintain and strengthen its resolve to dealing with price instability and addressing financial indiscipline through a raft of new measures.

In a statement Tuesday, GMAZ, the apex representative body of the grain milling industry described the recent MPS as having taken a prudent step of monetary easing, which is consistent with current practice by other progressive emerging economies.

Millers said they marveled the craftiness around viable management of the forex auction system and placing money supply growth in "regis mortis" in a bid to achieve single digit inflation and arrest price increments especially of basic commodities.

"The direction taken will, inter alia, achieve staple food pricing stability and consumer affordability. This will in the main, promote food security at both household and national level. The promising bumper harvest will reduce import bills and reserve the foreign currency available to other key import essentials," GMAZ chairperson, Tafadzwa Musarara said.

The remarks coincided with high productivity related allotments by the RBZ auction platform Tuesday.

A trading update released at the close business shows that the main auction platform received a total 267 bids and disbursed US$34.6 million.

Raw materials, machinery and equipment needs received a total US$16.1 million and US$6.2 million respectively in line with the productivity growth priority.

Consumables US$2.1 million and services US$1.8 million, retail and distribution received US$3 million with fuel and pharmaceuticals receiving US$2.3 million among other allotments.

The Small to Medium Enterprises segment received a total US$2.5 million with raw materials, machinery and equipment getting US$613 000 and US$485 000 respectively.

Consumables received US$714 000, retail and distribution received US$211 500, fuel electricity and gas US$171 870, pharmaceuticals US$156 065 among other allotments.

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