Whole­saler rejects plas­tic money, RTGS

Chronicle (Zimbabwe) - - Business Chronicle - Oliver Kazunga Se­nior Busi­ness Reporter

METRO Peech Whole­salers in Bu­l­awayo is re­fus­ing plas­tic money and Real Time Gross Set­tle­ments (RTGS) plat­forms from cus­tomers when buy­ing cook­ing oil, claim­ing sup­pli­ers of the com­mod­ity are ac­cept­ing cash pay­ments only.

Cook­ing oil is one of the prod­ucts listed un­der Statu­tory In­stru­ment 64 of 2016, which re­moves sev­eral goods from the Open Gen­eral Im­port Li­cence (OGIL).

The new reg­u­la­tion was pro­mul­gated in June this year to con­trol cheap im­ports en­ter­ing the coun­try.

An em­ployee at the whole­sale who pre­ferred anonymity said lo­cal cook­ing oil pro­duc­ers were de­mand­ing cash pay­ments to im­port crit­i­cal raw ma­te­ri­als re­quired in pro­duc­ing the com­mod­ity.

“As you might be aware Zim­babwe no longer im­ports cook­ing oil, the lo­cal man­u­fac­tur­ers are de­mand­ing cash pay­ments on cook­ing oil or­ders that we book so that they can im­port crit­i­cal raw ma­te­ri­als. It is only cook­ing oil where we are de­mand­ing cash pay­ments from our cus­tomers,” said the worker.

“We have also re­ceived a di­rec­tive from the head of­fice to ac­cept cash pay­ments only on cook­ing oil. We are not ac­cept­ing RTGS and plas­tic money on cook­ing oil.”

A man­ager at the whole­sale, Mr Eeben Ncube also con­firmed the sus­pen­sion of elec­tronic pay­ments such as plas­tic money on cook­ing oil from their cus­tomers.

“We are buy­ing cook­ing oil on cash ba­sis from sup­pli­ers. I have not re­ally found out why that is so. Maybe it is an is­sue about where they are get­ting their raw ma­te­ri­als. For fur­ther de­tails get in touch with our di­rec­tor in Harare, Mr Barry Brown,” he said.

Ef­forts to get a com­ment from Mr Brown were fruit­less as he was said to be out of of­fice.

How­ever, a snap sur­vey car­ried out by Busi­ness Chron­i­cle in Bu­l­awayo yes­ter­day re­vealed that three of the other city whole­salers were ac­cept­ing elec­tronic pay­ments on cook­ing oil and other prod­ucts.

Oil Ex­pressers’ As­so­ci­a­tion of Zim­babwe pres­i­dent Mr Sylvester Man­gani had not re­sponded to writ­ten ques­tions by the time of go­ing to print yes­ter­day.

Con­fed­er­a­tion of Zim­babwe In­dus­tries pres­i­dent Mr Bu­sisa Moyo who is also the chief ex­ec­u­tive of­fi­cer of United Re­finer­ies Limited, a lead­ing cook­ing oil pro­duc­ing com­pany, could also not be reached for com­ment as his mo­bile phone was not reach­able.

Since April, Zim­babwe has been ex­pe­ri­enc­ing cash short­ages due to il­licit fi­nan­cial leak­ages on the mar­ket.

The Re­serve Bank of Zim­babwe Gov­er­nor Dr John Man­gudya has en­cour­aged the trans­act­ing pub­lic to make use of elec­tronic pay­ment sys­tems and plas­tic money to ease the cur­rent cash short­ages.

As a short and medium term mea­sure to ease the cash short­age, Dr Man­gudya said the mon­e­tary au­thor­i­ties are in­tro­duc­ing $200 mil­lion worth of bond notes guar­an­teed by the African Ex­port and Im­port Bank (Afrex­im­bank).

Bond notes are ex­pected to start cir­cu­lat­ing in a few weeks’ time.

An Emi­rates jet on its in­au­gu­ral land­ing at Harare In­ter­na­tional Air­port in this file photo

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