M & R says auction system favours importers at the expense of exporters

Though the auction system that was introduced in January should see more foreign currency available on the market, exports will not be viable as long as the pricing of the foreign currency is one-sided, Murray and Roberts says in its half-yearly report for the period ending December.

The construction company, which also has agro-industrial and manufacturing operations, says “a viable auction system is one that lends itself to supply and demand forces while allowing sellers to withdraw the currency if the price on offer is unsatisfactory”.

Several exporting companies have complained that the current system is tantamount to subsidising importers. M & R says the current system leaves exporters at the mercy of importers and hopes that this “apparent disregard for exporters will be addressed by the monetary authorities”.

The company saw its revenue soar from $9.7 billion to $56.5 billion. Revenue for the year to June was $30.1 billion.

Operating profit stood at $17.3 billion up from $2.9 billion with net profit at $12.3 billion up from $1.7 billion.

Bonnezim had a good first half and had made inroads into the South African market.

The same applied to the Zimbabwe Tomato Drying Company. Its only concern was the foreign exchange control regime which favoured importers at the expense of exporters.

The contracting sector had substantial orders on its books while the manufacturing divisions had a strong first half.

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