The ongoing shortage of cash is hurting huge businesses and affecting their ability to pay foreign suppliers for critical raw materials. The sourcing of the raw materials is not the only area being affected as companies are also failing to remit dividends to foreign investors.
Zimbabwe Stick Exchange (ZSE) listed blue chip company, Delta Corporation has failed to pay up to $30 million in dividends to its foreign investors due to the the fact that local banks are having difficulties in settling any foreign payments.
Delta finance director Mathlogonolo Valela said:
We still owe major shareholders some dividends from last time because banks have delayed payments and we owe foreign creditors.
We have a foreign loan of about $30 million from Mauritius which falls due in the next 15 months but we are taking measures that should resolve the issue. We will never allow our creditors to be exposed to that extent but this is not something we can control.