Leather Sector Operations Being Crippled By Price Instability - Report

Leather manufacturers have lamented that their operations are now crippled by the price instability ravaging the country, the Chronicle reports. This was revealed by the Tanners Footwear and Leather Goods Manufacturers Association of Zimbabwe (TAFLAZ) deputy chairperson, Mr Stuart Simali who said:

In this inflationary environment it’s so difficult to operate especially for us as manufacturers. When retailers come and order finished products from us, they pay us maybe in 15 or 30 days after.

When inflation rises, they can easily increase their prices because they already have the stock in their shelves, but I have sold the shoes already and how do I change my price thereafter.

As an industry we are hard hit because we supply in bulk, once the shoes are gone they are gone there is no way I can go to the retailers and say can I change the price now that the price of everything have changed. So, that’s eating on our working capital, it is eating on our planning. I don’t know how the Government can stop the currency instability so that as an industry we can play our part

October inflation soared to 38.75% according to Zimstats.

More: The Chronicle