Business

Zim companies scramble for US dollars

HORIZONTAL

From discounted prices for US dollar purchases to promotionals, giving more for less… Zimbabwean companies are having to dabble in cut-throat initiatives to prop up their hard-currency sales in light of the impending festive holidays.

Consumers such as public servants who have just been paid their 2021 annual bonuses in foreign currency have some additional buck to spend.

December is also one of the traditional high-volume months for remittances and in spite of the resurgence of the Covid-19 pandemic, some diaspora Zimbabweans are still planning to travel back home for the festive season, bringing with them some more liquidity. Remittance receipts have leapt to more than $1 billion (R15.8bn) in 2021, and some retail outlets now allow remittance receipts through their outlets.

And now Zimbabwean businesses and companies are coming up with all sorts of initiatives to snap up a bigger portion of this extra buck in the pockets of some Zimbabweans. This comes as the free-falling Zimbabwe dollar continues to struggle and to pose difficulties for supply procurement.

“The resources from the foreign currency auction are inadequate and there is no guarantee that the money allocated will come on time. So, we come up with initiatives to swab as much as we can in foreign currency sales because that then helps the company to re-stock without having to spend much getting foreign currency from the unofficial currency markets,” a finance manager with a large Zimbabwe retailer told Business Report.

HORIZONTAL

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