Warning on Zimbabwe pre-payment

A WARNING to SA importers from Safcor Panalpina - Don’t pre-pay for merchandise imports from Zimbabwe! Given the latest arrangements from the Zimbabwe Reserve Bank, it would suit Zimbabwean exporters but would contravene certain SA Reserve Bank (SARB) conditions. The Zimbabwe bank has apparently introduced an arrangement for exporters in that country allowing them to retain greater proportions of the foreign currency earned by them for shortened payment terms. “The highest forex retention benefit (80%) is where the goods are paid for in advance of shipment,” says Safcor Panalpina. But the forwarder reminded SA importers that prepayment for merchandise imports is not generally allowed by the SARB.