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NRZ crisis affects Zimplow’s earnings

Roadwin Chirara

THE shambles in the rail transport system has severely affected Zimplow’s foreign earnings capacity as the company fails to deliver to external markets, a top company official has said.

Zimplow chief executive officer Tony Rowland said delays in transport logistics were having a negative impact on the company’s exports.

“We have been having problems with the NRZ in the movement of our products to South Africa and this has become a serious problem because we have failed to deliver timeously to our customers,” Rowland said.

He said the company was facing serious viability problems due to the persisting exchange rate which, he said, was failing to tally with inflation.

“The current exchange rate has impacted negatively on us. We feel the local currency has been over-valued mainly because the local dollar has failed to converge with the local inflation rates,” Rowland said.

He said the auction system had become a buyer’s market where there were more bidders than funds allocated.

He said exports were contributing two thirds to the company’s earnings, a situation which he said was being threatened by the exchange regulations.

Rowland said there was need for a liberalised exchange which would reflect the true picture of the exchange rate in comparison to other regional currencies.

“We are going to continue with our exports although their earnings will continue to be eroded. But you must realise that it has taken time for us to source these markets and to stop would prove difficult for the company,” Rowland said.

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