Stanbic Bank Zimbabwe continues to play a pivotal role in international trade by assisting Zimbabwean business people and external enterprises in a broad spectrum of trade through its Exchange Control Department.
The Bank’s Sector Head, Transactional Products and Services, Stanley Sachikonye, told participants to a Zimtrade Bilateral/Trade business opportunities breakfast seminar that Stanbic Bank Exchange Control department is the link between customers and the Reserve Bank on Exchange Control matters.
Sachikonye said the department is responsible for ensuring that Exchange Control rules and regulations are complied with on all cross border transactions processed through the bank.
“The department processes export documentation to enable exporting customers to ship their goods to foreign consignees and import documentation for our importing customers. The department submits on behalf of clients, applications to RBZ where prior Exchange Control approvals are required,” said Sachikonye.
The Stanbic Bank Exchanger Control Department is responsible for disseminating Directives/Circulars received from RBZ ,to clients and other stakeholders.
Sachikonye said the department offers Exchange Control advisory services to local and foreign clients on Export and Import Procedures /Documentation and Foreign Investments, namely-Investment and Disinvestment in Companies, Mergers and Acquisitions, Restructuring & Rights Issue, Outward Cross Border Investment, External loans among others.
The breakfast briefing was based on Zimtrade’s research on prospects for doing business with the Democratic Republic of Congo. Zimtrade sources trade /bilateral business opportunities through research in the region which they then share at a business forum/breakfast meeting normally in Harare and Bulawayo. Last year it focused on Mozambique and this year the focus was on opportunities in DRC.
Sachikonye said there is scope for DRC & the Republic of Zimbabwe to engage in a broad spectrum of international trade in which the main payment methods include, among others, the following : Outward Telegraphic Transfers (mainly MT103) - Open Account; Bank to bank transfers (mainly MT202) - Open Account; Documentary Letters of Credit and Import/Documentary Collections
He said Stanbic bank’s role is to facilitate both Zimbabwe business people and external enterprises on processes and documentation requirements and also advises on RBZ Exchange Control Regulations to both parties.
The bank deals with Inward & Outward Cross Border Payments.
On Outward Cross Border Payments, Sachikonye said the various cross border payments are governed by the Exchange Control Act and Directives issued from time to time by The Central Bank.
Stanbic Bank handles various payments types among them; Advance Payments, Open Account Payments, service Payments, Business Travel Allowances, Dividends, Loan Repayments, Deceased Estates, University and college fees among others.
Each payment type is processed upon submission of the relevant supporting documentation in line with the Exchange Control Guide Lines.
Stanbic Bank was nominated by Commerzbank as the best bank in Zimbabwe in the delivery of commercial payments and financial institution transfers for two years running in 2014 and 2015.
Sachikonye said the Inward Cross Border Payments sees Stanbic bank receiving cross border funds into customer accounts both corporate and personal from any part of the world through the use of its various correspondent bank relationships which are secure and reliable.
“Payments can be in any of our tradable currencies among them USD,ZAR GBP,EUR,BWP ,CAD,AUD etc. RBZ incentives are earned on the export of goods and services whilst Diaspora incentives are earned on Person to person receipts,” said Sachikonye.
He said the whole legislation of settlement is wholly supported by the backing of Bank Guarantees adding that the role and scope of letters of credit, documentary collections and guarantees is thoroughly examined.
Stanbic Bank Zimbabwe was nominated as a winner of the 2016 International Europe Award for Quality by the Global Trade Leaders Club.