Own Correspondent
Continued adverse macroeconomic conditions affecting trading and the weakening of the country’s currency is forcing the South African retail company Pepkor Holdings to close its shops.
Pepkor which operates under the PEP brand has since issued a statement indicating that the decision was reached due to unbearable operational expenses as well as losses that the company has been enduring.
Pepko Holdings’ Zimbabwean business is reported to have made a loss of 70 million rand ($4.8 million), including the full impairment of the disposal of the group’s assets, reads the statement.
Severe shortages of foreign currency, fuel and electricity have sent inflation soaring to its highest since 2008. Consumer finances have been constrained amid stagnant growth, rising living costs and unemployment hovering above 90%.
Many foreign owned businesses have been facing difficulty in grappling profitable business in the country regardless of the government’s efforts to create a conducive business environment in order to attract foreign direct investment.
