Freedom Mashava, Visuals Editor 
NATIONAL Tyre Services Limited (NTS) is one of the country’s biggest tyre firms, leveraging on improved stock availability and a wide branch network.
The Financial Gazette’s Freedom Mashava (FM), interviewed NTS managing director Benson Samudzimu (BS) to discuss the company’s performance and impact of the Covid-19 pandemic, among other issues.
FM: How did the company perform this year?
BS: Let me start by thanking you for this opportunity and new season greetings to you. Well, NTS performed remarkably well under the circumstances — the year 2021 was a difficult trading period. Global economies were ravaged by the Covid-19 pandemic and Zimbabwe was not spared.
Benson Samudzimu
As NTS we remained on course in terms of expansion, as we added new stores, bringing the number of retail branches to 16. Being a closed period for our half-year reporting, I am unable to go into specifics, but suffice to say that we recorded positive performance to date. In a nutshell, challenges were real, but I’m happy there were notable developments in 2021.
FM: What were some of the major challenges that you faced this year?
BS: Like any other company, we faced a plethora of challenges, mainly due to the devastating effects of Covid-19. The pandemic is negatively impacting the country’s economic recovery. The negative effects of volatile macroeconomic conditions were felt in the tyre industry.
As a company we struggled with affordable funding due to economic constraints facing our country. We have had to reschedule and abandon some of our strategic business plans to meet the demands of the harsh economic environment. We obviously had to prioritise health and staff welfare to limit the spread of the virus.
Excessive power cuts coupled with rubber shortages created bottlenecks in our retreading factories.
The company experienced stock gaps in some product categories owing to inadequate foreign currency to import tyres. Stock gaps were exacerbated by limited cross-border and intercity movement during the national lockdowns and supply chain disruptions on shipping lines.
FM: How did Covid-19 affect supply chains and retail operations?
BS: The Covid-19 pandemic has brought unprecedented challenges to our stock supply. Initially, source countries stopped production and shipping of tyres, throwing our plans into turmoil. Disruptions to shipping lines schedules and shortages of containers resulted in huge stock gaps. Stock movement was also limited during strict Covid-19 lockdowns to curtail the spread of the coronavirus. Subsequently, border clearance queues for cargo delayed the arrival of tyres and rubber.
Like other ventures, the tyre business is more viable when people and goods move freely in the economy. In fact, tyres are meant to facilitate movement, but the pandemic created demand and supply glitches during the year.
Business trading hours were reduced, affecting the drive-in sales customer segment. Stricter localised lockdowns imposed in hotspot areas forced our retail outlets to temporarily close. Our retreading and fleet customers parked their fleets due to the pandemic, affecting retreading demand.
We are devastated by the loss of prominent business partners, customers, families and friends to Covid-19. May their souls rest in peace.
The new Covid-19 variants dampened our hopes of working under a Covid-19 free era. The devastating effects of the pandemic continue to reinvigorate themselves, presenting new challenges to our business operating environment.
Nonetheless, as a business community in crisis we learn and adjust our processes. The year 2021 became annus horribilis and it was a remarkable year in terms of refocusing and establishing new business processes. Bad as it was, the pandemic only came to sharpen our thinking not just in laboratories but in the entire business world. It’s been a period where smart business decisions saved the day.
FM: What is your comment on the inadequate supply of foreign currency and how this is impacting stock importation?
BS: The company requires foreign currency to build stock reserves and meet available demand. Inadequate foreign currency is delaying the arrival of stock from China and India. We are thankful to the central bank for their efforts and the assistance to the business community and to ourselves.
FM: Do you think there are any hopes of economic recovery in light of the Covid-19 pandemic?
BS: Hopes of economic recovery remain high but the delayed onset of the rainy season is threatening the agricultural season with disaster, which if it comes to pass, will derail the 2021 gains. Road infrastructure development and investment in the agriculture sector creates lucrative opportunities for our tyre business. We remain optimistic that the government will find effective measures to stabilise the currency and generate enough electricity to power the industry.
FM: What are your prospects for the year 2022?
BS: We have established solid ground for growth. In 2022, NTS will leverage on improved stock availability and a wide branch network for continued growth. We will open new outlets with the aim of getting closer to our customers.
newsdesk@fingaz.co.zw
