HomeBusiness DigestZireva slams poor economic policies

Zireva slams poor economic policies

Roadwin Chirara

OK Zimbabwe chief executive officer William Zireva has blamed bad economic policies for reducing the country to a nation of paupers.

tica, sans-serif”>“The current economic environment has reduced the country to a nation of poor people,” Zireva said.

Addressing on analysts’ briefing in Harare on Wednesday, he said drought had become a reality and this was likely to increase pressure to import food given the poor harvest countrywide.

Zireva said this would put further pressure on the nation’s foreign currency reserves which are failing to meet market and government requirements.

“The country is facing critical shortages of foreign currency, basic consumer goods, fuel and power and this is likely to be worsened by the need to import grain after the poor harvest this past farming season, largely as a result of erratic rains and the shortage of inputs,” said Zireva.

He said projected inflation figures for year-end were unachievable and would have to be revised in line with developments on the ground.

“Interest rates should be revised to above 100%. This should also include a revision of the inflation figure to reflect the true position on the ground,” Zireva said.

He said company sales volumes were likely to be affected by the continued decline in individual and household disposable incomes due to high inflation.

“Our business is customer-based and the continued decline in disposable incomes of individuals is going to have an impact on our sales volumes. We hope the situation will ease marginally as soon as salary increments are effected during the course of the year,” he said.

OK Zimbabwe in the six months under review hit the trillion-dollar trading mark, recording an increase in turnover of 310,3% to $1,317 trillion against last year’s $320,9 billion.

Net sales increased 398% to $1,176 trillion against the previous year’s figure of $288,1 billion.

Zireva attributed the increase in the company’s sales volumes to higher demand due to salary increments for civil servants during the period under review.

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