JEWELERY SECTOR TOASTS TO FOREX REPRIEVE
The jewellery industry will retain 100% of the foreign currency generated from their operations when using gold to produce their wares, the central bank governor has said.
In his 2018 monetary policy statement released last week, Reserve Bank of Zimbabwe governor John Mangudya said the jewellery industry was key to promoting value addition.
“Approved jewellery manufacturers to meet local demand shall be availed not more than 3kgs per quarter through Fidelity Printers and Refiners under a properly monitored arrangement to guard against abuse of this facility,” he said.
Recent constraints in liquidity have left the jewellery industry hampered since jewellery was considered a luxury rather than a necessity.
This has led to decreased buying in the jewellery industry, forcing them to depend on the bridal and fashion jewellery business, both of which were seasonal.
Aurex Holdings general manager Paipa Munhumutema welcomed the move by the central bank.
“This is a welcome move for our company and the jewellery industry as a whole. It encourages jewellery manufacturers to export more, thus generating more forex needed for use in retooling our factories and for the complete revamping of machines and processes to match modern trends in jewellery design and manufacture,” he said.
“As you aware, our country and industry have lagged behind with regards to capacity utilisation and justification for technology upgrade and general economic development in the manufacturing sector.”
Munhumutema said Aurex has strategically positioned itself to manufacture genuine, quality bridal and fashion jewellery for both the domestic and international market.
“In particular, the company has contributed to export receipts through the manufacture and supply of high quality and genuine gold chains and bangles, and rings. Aurex jewellery has made notable progress in penetrating international markets through marketing and distribution partnerships especially in the Middle East,” Munhumutema added.
Aurex Holdings is a subsidiary of the central bank.
Last year, mining exports were $2,64 billion excluding gold while gold exports were $1,28 billion.