Omega Ukama 
SUPERMARKET group — OK Zimbabwe — says the country’s economic situation will stabilise in the long term.
The country, which is experiencing its worst economic crisis in a decade, is faced with high inflation, fuel, electricity and foreign currency shortages and a devastating drought that has left at least 5,5 million people in need of food aid.
Alex Siyavora, OK Zimbabwe’s chief executive, told shareholders at an annual general meeting (AGM) last week that the country is not headed back to the 2008 hyperinflationary period despite the current challenges.
“The environment and attitude of the authorities when you compare 2008 and the current situation is fundamentally different. Back in 2008, there were price controls and these had the effect of clearing product off the shelves,” he said.
“This time around the authorities’ approach is that the market must find itself. It is difficult for the consumer because of the prices but it is the most logical way of rationing a product.”
Siyavora, however, noted that the Zimbabwe Stock Exchange-listed retailer experienced foreign currency shortages in the last five months.
“We experienced difficulties in accessing foreign currency to import goods and our suppliers had the same problem, as a result, we experienced erratic supply of goods in some lines. However, our stores have remained reasonably stocked,” he said.
The OK Zimbabwe boss further indicated that the economy was unstable in the period under review “as it was characterised by volatility in the exchange rate”, which he said resulted in escalation of prices.
“The rate, however, stabilised following the introduction of the local currency and the accompanying policy measures. We have since seen prices stabilising and we hope that this will continue.
“We are experiencing cost pressures but we are confident that we will achieve our profit target for the year,” he said.
Prior to the AGM, the retailer had expressed optimism that the recent abolition of the multi-currency system — in favour of the Zimbabwe dollar as the sole legal tender — would stabilise prices, which had been rising unabated.
This also comes as the parallel market exchange rate for the domestic currency against the United States dollar, which has driven inflation of late, has been somewhat tranquillised since the changes that were introduced in June through Statutory Instrument 142 of 2019.
Siyavora further stated that the power crisis has affected its operations, with its bakeries hit the hardest.
“We have had to operate our stores on generator power, which is costly. This has caused us, in some cases to rationalise our opening hours,” he said.
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