Business - Companies & Markets - Featured - Local - November 10, 2020

Turnall buoyed by stable RBZ foreign exchange auction

By Tariro Chimhanda

THE country’s biggest fibre cement manufacturer, Turnall has credited the stability brought about by the apex bank’s foreign currency auction system, Business Mail reports.

In its trading update for the third quarter ending 30 September, the company said the operating environment improved after the intervention by RBZ to stabilise the foreign exchange rate.

“The operating environment for the third quarter improved due to the stability of the foreign exchange rate after the introduction of the foreign currency auction system by the Reserve Bank of Zimbabwe.

“The prices for goods and services have relatively remained stable and this has enabled the business sector to improve the planning process,” updated Turnall. The company also commended the stable power supply and fuel availability saying it led the ‘business to improve capacity utilization’.

Interestingly despite the ravaging Covid-19 virus, Turnall’s sales volumes were 11 percent higher for the comparable period last year.

“The Group’s sales volumes for the quarter were 11% above the comparable period last year and 81% above the previous Covid-19 impacted quarter. Cumulative sales volumes for the nine months were 3% above the comparable period last year,” it stated.

According to Turnall’s chairperson, Mr Bothwell Nyajeka, the group is confident of further improvement of sales before the rainy season and the opening up of land borders next month.

“The higher seasonal demand is expected to continue in the fourth quarter as customers roof their properties before the onset of the rains. The relaxation of restrictions and opening of borders in December 2020 is expected to provide an improvement in the movement of both people and cargo,” said Mr Nyajeka.

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