Paul Nyakazeya, Group Digital Editor 
ZIMBABWEAN firms are bracing for tougher times ahead as the country’s economy shows little signs of recovery, according to several trading updates released by listed firms. 
The country remains constrained by shortages of foreign currency, fuel, electricity as well as a weakening local currency which has resulted in depressed demand.
In a trading update for the third quarter ending September 30, Andrew Lorimer, Innscor Africa Limited company secretary said production levels and volumes during the period under review were subdued at most of its units.
“Levels of local inflation has continued to push overhead in their business units, but generally cost has continued to be well managed,” he said
“Both foreign and local liquidity has remained extremely constrained in the quarter, and we continue to work with our financial institution partners to attain the necessary funding to support the significantly increased values of working capital now required,” Lorimer said.
Margaret Munyuru, OK Zimbabwe’s company secretary said the trading environment became progressively more unstable towards the end of the six months to September 30, 2019.
“The scarcity of foreign currency slowed down the importation of goods and this, combined with high prices of goods that were available, slowed sown consumption particularly in the second half of the reporting period. Resultantly, volumes sales declined by 23 percent compared to the same period last year,” Manyuru said.
Gregory Sebborn, chairman of Proplastics said demand is expected to remain subdued in the short term given the current economic environment.
“However, we expect demand to significantly improve in the medium to long term given the need to rehabilitate the water and sewer infrastructure as well as irrigation resuscitation initiatives. The current electricity and water challenges will continue to weigh down business operations into the foreseeable future,” he said
He said the shortage of foreign currency on the interbank market will affect availability of raw materials going forward.
“However, the group will continue to initiate mitigatory measures in order to sustain operations.
We expect the full year sales tonnage to remain depressed below prior year overall but with some improvement expected in the fourth quarter. We also look forward to our call for the removal of duty on imported raw materials being considered favourably by the authorities,” Sebborn said.
Moreblessing Mukamba, Unfreight company secretary said foreign currency shortages had a negative impact on the business as operational expenses continue to increase month-on-month due to the hyperinflationary economic environment.
“We will continue to focus on growing volumes on low margin in the Swift business, which is yielding the much needed positive results. We will also continue to grow the specialised dedicated service throughout Bulwark Bran. Skynet continues to expand its footprint on the international courier service,” Mukamba said.
Rita Likukuma, chairperson of Turnall Holdings Limited said the country experienced significant power shortages during the third quarter and the power utility introduced load shedding for up to 18 hours a day which affected production.
“This affected production and production costs as the group switched to expensive alternative power sources. Despite the economic challenges Zimbabwe is facing, Turnall remains focused on its strategy of reducing costs, improving profitability and strengthening its statement of financial position,” Likukuma said.
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