OK ZIMBABWE says currency regulations are impacting its pricing strategies and competitiveness when compared to informal markets.
The crux of the issue lies in the in-store “willing buyer-willing seller” exchange rate, currently set at 10 percent above the central bank’s auction rate. Retailers argue this “artificially inflated” rate puts them at a significant disadvantage compared to informal players operating outside the regulated system.
OK Zimbabwe’s volumes declined by 32 percent for the quarter ended December 31, 2023 compared to the prior year and by 28 percent for the nine months ended December 31, 2023.