Forex shortage cripples Swivel’s operations Swivel Fencing Company employee, Mr Borniface Munyoro, engrossed in his work at the factory in Belmont, Bulawayo, yesterday.
Swivel Fencing Company employee, Mr Borniface Munyoro, engrossed in his work at the factory in Belmont, Bulawayo, yesterday.

Swivel Fencing Company employee, Mr Borniface Munyoro, engrossed in his work at the factory in Belmont, Bulawayo, yesterday.

Prince Sunduzani, Chronicle Reporter
SWIVEL Fencing Company in Bulawayo is facing closure as a result of failure to do international transfers and shortage of foreign currency to buy critical raw materials.

The company manufactures different types of fences and depends on imported raw materials mainly from South Africa.

In an interview yesterday, the company’s director, Mr Joshua Nemukuyu, said the shortage of forex to purchase raw materials has crippled the company’s operations and that the firm was at risk of closure.

“The situation is a bad one, you have seen the workshop, we have machinery and everything is there but we are not able to get the raw materials,” he told Business Chronicle.

“All this wire is coming from South Africa and we turn it into barbed and diamond mesh. It’s not that we do not have money in our account. We have the money but we are not able to transfer it or get foreign currency.

“The banks are not transferring the money. I can’t work without this wire and that means we are on the verge of closing and if we don’t get the wire it means there won’t be any production.”

Mr Nemukuyu appealed for Government intervention saying delays in getting foreign currency would result in the demise of a company that has a promising future.

He said since inception, the company had shown signs of growth with increasing orders from local customers.

Mr Nemukuyu urged the Reserve Bank of Zimbabwe to assist local firms including upcoming businesses saying failure to do so meant that workers were also at the risk of losing their Jobs if the company closes shop.

“We are calling on the Reserve Bank to give us an ear as producers and send someone here to see what we are doing. Probably they will find a solution. We are in the manufacturing business and we need help from them because this is a serious problem,” he said.

“We employ people and this is affecting the workers because if the situation continues like this there is no way I can be able to keep these guys (workers) here while they’ll be doing nothing.”

Recent reports indicate several manufacturing companies have turned to illegal foreign currency dealers popularly known as Osiphatheleni for foreign exchange to import raw materials due to cash shortages.

Industry and commerce executives urged monetary authorities to come up with measures to cushion the productive sector.

Last week the Confederation of Zimbabwe Industries said firms were pinning hopes on the $600 million RBZ nostro stabilisation facility, which is being disbursed to assist firms. The move follows widespread concerns that procuring of raw materials was now a nightmare as companies have to queue for foreign currency allocation at the central bank or seek alternative avenues. Industrialists have said delays in payment for consignments has seen some suppliers demanding cash or increasing prices to cover delay inconveniences.

@PrinceNkosy102

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