The Confederation of Zimbabwe Industries (CZI) revealed that businesses are left with less than a month’s supply of foreign-sourced raw materials. In essence, the industry will shut down in a month’s time if foreign currency shortages are not addressed urgently.
CZI president Sifelani Jabangwe told a breakfast meeting in the capital on Thursday that business has 10 ten days to make decisions. Said Jabangwe:
Most of our members have got a month or less of raw materials, but have no access to then buy more raw materials because there is no (forex) allocation from the RBZ [Reserve Bank of Zimbabwe] … So we have a situation where the country is grinding to a halt. We do not have more than 10 days to make decisions.
Right now, as a business, we do not have more than 10 days to make decisions because beyond that, we are going to have more businesses closing, then we will have an even bigger problem. Now, as I have said, businesses need to procure raw materials to continue doing business, which is why you have seen some businesses charging in United States dollars.
Some businesses that are open right now are likely to be closing in a month or so. What we are saying is that we either need an allocation of United States dollars now or else we should be allowed to charge in United States dollars because that is what we need for our businesses.
Capri Zimbabwe managing director Gary Watson said that his company has been closed since November 2018 and had to shed 400 of its workers.
The Reserve Bank of Zimbabwe (RBZ) is the central bank of Zimbabwe. Its offices are located at number 80 Samora Machel Avenue in Harare. The Reserve Bank of Zimbabwe operates under the Reserve Bank of Zimbabwe Act, Chapter 22: 15 of 1964. The Act provides... Read More About Reserve Bank of Zimbabwe