Zimbabwe’s leading sugar refinery company, Star Africa Corporation Limited (SACL), third quarter (Q3) has been hampered by foreign exchange losses and finance costs on foreign borrowings following the introduction of the auction system.
Reserve Bank of Zimbabwe (RBZ) auction system was introduced in June aiming to maintain a balance between stimulating productivity while eliminating reckless speculative behaviour which has seen rates at the parallel market escalate.
For SACL, the third-quarter operating environment was also negatively affected by the advent of Covid-19 which has affected the conduct of business and way of social living.
In a statement, the group chairman Mr. Joseph Mutizwa said the total turnover for the year increased by 24%, and Earnings before Interest, Tax, Depreciation, and Amortisation (EBITDA) increased by 34% compared to the previous year.
“However, this profitable environment was greatly hampered by foreign exchange losses and finance costs on foreign borrowings following the introduction of the RBZ auction system. The Group recorded a loss after tax of ZWL$ 54 million,” he said.
For Goldstar Sugars Harare(GSSH) the 11.5% decrease in sales was attributable of Covid-19 related challenges.
On the other hand, Country Choice Foods (CFF) was also down by 11% due to low disposable incomes and depressed business activity experienced by this operational unit’s major industrial customers.
Reserve Bank of Zimbabwe (RBZ) foreign exchange auction platform allotments reached over U…