Footwear firm applauds Zimtrade, forex auction trading system
A LOCAL firm has applauded the Reserve Bank of Zimbabwe (RBZ) and the government for introducing the foreign exchange auction trading system, which has seen it improve its production and expand operations in the region.
Triple Tee Footwear’s managing director, Enock Chitekedza, says the move by the RBZ was a shot in the arm as their company has been able to secure enough foreign currency to operate full capacity.
“In the years 2019 and 2020, we hit some glitches when foreign currency became scarce.
Our suppliers had lost confidence in us as we were failing to pay for the raw materials continuously and on time.
“But we are so grateful to the RBZ and the government of Zimbabwe for introducing the Auction system. It breathed a new life into our organisation because we were at the point of closing. We would run for months without production but with the introduction of the auction system, we have been able to purchase our raw materials timeously and confidence is building within our suppliers.”
Chitekedza says the move has helped them in remaining competitiveness and has resulted in their prices being stable. As a result of the introduction of the auction system, in 2021 Triple Tee increased its production capacity from 30 percent to 71 percent. This has seen the company responding to customers’ calls for it to become a one-stop shop for PPE products by opening a garment-manufacturing factory.
Chitekedza also expressed his gratitude to Zimtrade for opening some avenues and putting their company on the map.
“Zimtrade has helped us improve our products visibility in the region and in Africa. They have taken us to Zambia several times culminating in us setting up an office in Lusaka and another one in the Copperbelt. Unfortunately, due to the economic challenges and the pandemic, we had to close the Copperbelt operations because there was not much happening in that area but we are still operational in Lusaka. We went to DRC twice so far, the interests in our products is very high and we are making plans to come up with logistical ways of getting the products across to DRC.
Chitekedza says they also participated in the IATF2021 exhibitions in Durban, South Africa that also exposed them to other stakeholders sharing market intelligence about the sector. Through the exhibitions, they got the opportunity to benchmark their products against those from the continent resulting in them getting inquiries from as far as Nigeria.
Chitekedza, however, said they were facing serious power outages, which have affected production at their factory, and other firm in the Sunway City Industrial park.
“Our power line is connected to the residential areas surrounding Sunway City Industrial Park. We get disconnected time and again. We have to rely on running diesel generators, which is a very expensive option for us. It is our plea that if the power utility can provide dedicated lines or a dedicated line to this industrial park which is a Special Economic Zone. It will help reduce our costs.
‘‘We have chemicals that have to remain at 40 degrees plus throughout the year 24/7.
When there are power outages we are forced to run the generator even during the night which is expensive in terms of fuels.”-eBusiness Weekly
