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'Schweppes Selling Mostly In RTGS Dollars'

'Schweppes Selling Mostly In RTGS Dollars'

Beverages manufacturer, Schweppes Zimbabwe, says 85 per cent of sales on the domestic market are being conducted in local currency while 15 per cent are done in foreign currency.

Schweppes Zimbabwe chief executive, Charles Msipa, said the company requires US$1.5 million to US$2 million every month to import key raw materials. Said Msipa:

We continue to sell most of our products in Zimbabwe dollars. Most of our major retail customers sell in Zimbabwe dollars and also pay in local currency.

Msipa said it was not Schweppes’ policy to demand payment exclusively in US dollars.

He said they export some of their products such as Mazoe Orange Crush, to regional countries that include South Africa, Zambia and Botswana, where they get some of their forex.

Meanwhile, Confederation of Zimbabwe Retailers (CRZ) president Denford Mutashu claimed some retailers were entering into agreements with manufacturers for payments in forex.

Under the agreements, buyers (retailers) will pay significantly less when they pay using US dollars than they would pay when using Zimbabwe dollars. Said Mutashu:

The practice is rampant and is informed by the requirement to source foreign currency by corporates internally without having to increase traffic to the auction market.

Quite a number of companies have resorted to that and you may also have realised that a number of products are no longer available due to the limited availability of foreign currency.

More: The Herald

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