RBZ relaxes exchange controls to stimulate FDIs

The RBZ has relaxed foreign exchange regulations as part of measures to stimulate foreign direct investment.

Kupukile Mlambo, RBZ deputy governor said the central bank now allows foreign investors to freely invest in the country without seeking approval.

He said they have tried to relax some of the foreign exchange regulations so that they use them not as a means of stopping capital coming out, but at means of facilitating the flow of capital.

Previously a company would be obliged to inform the central bank if they intended to borrow any amount offshore.

All they require is that if the amount is above $7.5 million, the company should inform the RBZ which the information is not because they want to stop investments from coming but it's because of balance of payments purposes, they need to keep track of what is coming in.