Zimbabwean company says “bond notes” are adding to uncertainty



Plastics manufacturer Pro Plastics says trading conditions have deteriorated after monetary policy interventions by the Reserve Bank earlier this month, and warned that introduction of bond notes would worsen the company’s plight.

Central bank governor John Mangudya last month announced that 50 percent of all export proceeds will be transferred to the central bank and returned to exporters as RTGS. Central bank also said it would soon introduce domestic bond notes to circulate alongside foreign currencies.

Pro Plastics chief executive Kudakwashe Chigiya told the company’s annual general meeting today that the policy would have an adverse effect on its operations as it uses 80 percent of its export proceeds to pay for raw material imports.

“The adverse effects of these policy pronouncements have already been felt in our May figures. We have seen the month of May slowing down in terms of sales and we expect this trend to continue in the short-term,” Chigiya said.

“As we speak business is at a standstill as the market uncertainly awaits introduction of the bond notes.”

Pro Plastics was unbundled last June from its parent company Masimba Holdings, formerly Murray & Roberts Zimbabwe.

Without giving figures, Chigiya said the company’s turnover in the four months to April was flat on prior year with exports contributing 14 percent of total revenue.-The Source


Related stories:

Chinamasa says Zimbabwe will not be a “fishing pond” for US dollars

Zimbabwe hires German firm to print bond notes

Zimbabwe’s bumpy, costly road to a cashless future

The government’s hidden hand in Zimbabwe’s cash crisis 

Chinotimba says give people bond coins if they do not like bond notes

Chinamasa tells Parliament that bond notes are above board

Zimbabwe says it needs bond notes because “we are feeding looters”

Zimbabwe scraps plans to convert export earnings into rand, euro

Tsvangirai calls emergency national executive meeting Thursday to decide way forward on bond notes

It’s a stimulus package- Mangudya says

Tsvangirai to convene his cabinet tomorrow to discuss proposed bond notes

Bond notes -a legal perspective

How people pay in Zimbabwe

Zimbabwe stems illicit outflows

Cash shortages – the real causes and the wrong diagnosis

New bond notes-key questions answered

Industry embraces bond notes

Mangudya full statement on the introduction of bond notes

Highlights of RBZ intervention on cash shortages

MDC says Mugabe is bringing back Zimbabwe dollar through the back door

Zimbabwe to introduce bond notes as cash shortages bite


Don't be shellfish... Please SHAREShare on google
Share on twitter
Share on facebook
Share on linkedin
Share on email
Share on print

Like it? Share with your friends!

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.


Your email address will not be published. Required fields are marked *