Zimbabwe: Lafarge Zimbabwe has blamed cash shortages for mounting losses. The company reported that it made a loss of US$2.2m in the first six months of 2016, up from a loss of US$1.3m in the same period of 2015. Its sales revenue grew slightly to US$26.5m from US$25.4, according to the New Zimbabwe newspaper. The cement producer has blamed the loss on cash shortages in the country and competition from imports.
“The volumes of cement sales remained subdued due to increased competitive activity in the total market following the influx of cement imports into the country as well as the entry of a major competitor into the Harare market,” said chairman Kumbirayi Katsande. He added that import restrictions would be helpful but that they would not solve major structural problems with the local economy.
Cash shortages are causing delays in paying foreign creditors said Katsanda. The country is preparing to introduce bond notes, a new local currency, to ease the problem, in November 2016.