Categories: Stories

Powerspeed boosted by declining dollar

Although its net profit increased more than five-fold from $45.7 million to $269.3 million, and its sales shot up from $1.3 billion to $3.2 billion, Powerspeed Electrical says the figures were primarily a result of the decline in the Zimbabwe dollar.

There was no improvement in trading conditions and no growth in volumes. It also said it was being adversely affected by a skills drain and had lost a number of talented, skilled and experienced people.

It also said its Zambian operation was failing to take off properly because of lack of skilled people.

It could not transfer skilled managers from Zimbabwe because of difficulties in obtaining permits for them but this problem was being addressed.

Though the future was bleak, the company said it was determined to make the most of the situation.

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Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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