The current foreign currency shortage in Zimbabwe is threatening business in Zimbabwe as a number of companies face closure. Companies cannot access foreign currency to buy raw materials for their operations.
One of Zimbabwe’s manufacturers, Refrigeration and Air Conditioning (Ref-Air) revealed that it is facing closure as it could not get foreign currency to buy raw materials.
“We are possibly going to run out of raw materials next week and our factory shuts down,” said Ref-Air manager Clive Oxyden-Willows.
Some companies have resorted to using the black market to get foreign currency according to Confederation of Zimbabwe Retailers President Denford Mutashu.
Besides Ref-Air, the Registrar General (RG)’s department suspended issuing emergency passports as it requires special imported paper to produce travel documents according to Financial Gazette.
The country’s airways Air Zimbabwe has not been spared as plane spare parts are being delayed resulting in flights cancelled.
DStv subscribers have also been affected by the shortage as banks suspended payment. Zimbabwe has been facing foreign currency shortage since last year.
Economists believe that resuscitating the industry would help increase exports to get more foreign currency and resolve the shortage challenge. Some also believe that Zimbabwe should adopt the Rand since the country imports the most from South Africa.