The Sunday Mail
Business Reporter
Industry believes that the combined impact of fiscal measures outlined in the three-year economic blueprint, the Transitional Stabilisation Programme (TSP), and recent monetary interventions will open the economy to more investments.
The bold decision to remove the currency peg of 1:1 between the United States dollar and RTGS (real time gross settlement) balances has been cheered by businesses as a policy that will allow companies to plan.
Innscor chairperson Mr Addington Chinake said the interbank foreign exchange market will allow the business to adequately plan working capital cycles and execute capital projects.
“By its very nature, the group is a large user of foreign currency, and we therefore welcome the recent Monetary Policy Statement, which has sought to provide a transparent mechanism for importers to access currency from the market, whilst providing exporters value for their foreign-currency earnings.
“We are hopeful that the system articulated will allow our businesses to adequately plan working capital cycles and to execute on the numerous capital projects we have in terms of our long-term strategic targets,” said Mr Chinake.
In the previous monetary regime, exporters had become uncompetitive as the export-incentive scheme had been eroded by inflation, which was driven by foreign currency premiums.
However, the new policy will allow Innscor to evaluate its export competitiveness.
“We fully expect to commence exports in a number of our business units,” said Mr Chinake.
“In addition to the above, and following Government’s mantra of being “open for business”, we call on other relevant authorities to ensure that, amongst other things, processes to implement business combinations are simplified; hence, enabling our business units to better compete in the region.”
Mr Chinake also said the country can quicken economic recovery on a more sustainable basis if there is policy consistency and less reliance on subsidies.
Dairibord Holdings Limited chairperson Mr Josh Sachikonye also noted the positive impact brought by the MPS.
The company, he said, will continue to investment in local raw milk production as a strategic pillar for import substitution and export growth.
Quick-service restaurant group Simbisa Brands, which is also a unit of Innscor, said it “will continue to roll out stores in outlying markets in Zimbabwe that meet our minimum investment criteria”.
This will include the roll-out of the Grilll Shack franchise, said Simbisa.
Simbisa’s sister company, Axia, is bullish about the country’s prospects and growth potential notwithstanding the current challenging economic environment.
Axia chair Mr Luke Ngwerume said the group will pursue growth that creates shareholder value.
“Sourcing foreign currency to procure inventory and settle foreign suppliers remains a priority for the group. Given the group’s portfolio of business units that require about 50 percent of its inventory being imported, it will be imperative to evaluate investment opportunities with export potential, even if they are outside the group’s speciality retail and distribution space,” he said.
