The last year was one of two trading halves. The first half, which covered the pre- and post-election period, was characterised by initial positive consumer sentiment, expansionary monetary and fiscal policies that drove consumer spending. The shortage of foreign currency became more pronounced in the second half thus compromising product supply.
The fiscal and monetary policies implemented between. Otober 2018 and February 2019 have significantly altered the trading environment. Of particular note is the 2% transaction tax, the adoption of the local currency(RTGS$) as the functional currency and the introduction of an exchange rate on the RTGS$. The cost of hard currency continues to escalate thereby driving inflation.
The acute shortage of foreign currency persists despite the introduction of the inter-bank foreign exchange market. We have outstanding foreign creditors and loans, the bulk of which is overdue. We remain engaged with our counter parties in this regard. The Board is concerned about the Company’s ability to access foreign currency in order to meet its external obligations. Strategies to mitigate this challenge are ongoing including contracting for additional barley to generate exports
NINE MONTHS OF STABLE PRICING