Forex Scarcity Derails Old Mutual Project

By Tinashe Kairiza

CONSTRUCTION of Old Mutual's US$21,4 million small-to-medium enterprises (SMEs) complex, which was initially set to be finalised during this year's first half, will be delayed owing to the debilitating foreign currency crisis affecting the country, businessdigest has learnt.

The cost of the project, initially pegged at slightly over US$21 million, is also forecast to soar.

Zimbabwe abandoned its local dollar and adopted a basket of currencies in 2009 to arrest spiralling inflation, but local industries are currently struggling to access foreign currency to import key raw materials required to sustain operations.