Zimbabwe News and Internet Radio

Farai sanitary wear firm faces closure

ONSDALE Enterprises, one of the country’s major sanitary wear manufacturers is on the verge of shutting down ― and sending 140 workers home ― due to the shortage of foreign currency to import raw materials, a company executive has said.

Company closures continue to drive Zimbabwe’s unemployment rate, estimated by independent economists to be about 90 percent, higher.

A Confederation of Zimbabwe Industries (CZI) manufacturing sector survey published last week, in partnership with The Financial Gazette, showed that about 30 percent of firms in the sector were on the brink of collapse due mainly to the foreign currency crunch.

Onsdale, which makes the “Farai” brand of sanitary wear and toilet paper, among other comfort products, was set up in 2004 after a US$2,3 million investment.

The industry imports as much as 75 percent of its raw materials.

“We are going to close, we are left with only three weeks’ supply of raw materials,” Onsdale sales and marketing manager, Paddington Mupfururirwa, told reporters on the sidelines of an exporters’ conference held in Harare last week.

“We have to close, there is no way out. We will let people go home and return when the situation improves. It is a sad situation.”

Zimbabwe’s foreign currency crisis intensified in the first half of 2016, the culmination of a yawning current account gap caused by a collapse in local production as well as weak commodity prices for the primary resource-dominated economy.

The country has racked up a cumulative US$20 billion trade deficit since dollarisation in 2009.
The manufacturing sector, whose contribution to exports has declined from 29 percent in 2013 to 15 percent last year, is among the most affected by the foreign currency shortage.  The Financial Gazette

  • We have forex to import Rolls Royces

  • what raw materials, cotton hantiti yakazara kuCOTTCO here.

    • uribenzi remuroad chairo….akakuudza kuti cotton ndooyega inodiwa ndiani….ndimi imbwa dzezanu dzinotengerwa doro nokuti hadzifungi…mai vanohura nembwa nxaah

    • you could hv highlighted some of the raw materials to me Nyasha Mdala. I really dont know. Muhupenyu variko vanhu vakaita seni vasingazivi, usavaitira hasha dzakanyanya

    • Ranga siyana naye uyu,unobva pamberi paMwari nemhepo dzaNovember.Hapana chozikanwa

    • Sory ranga haatozivi kut haazivi uye anestress dzakewo

  • Pakaipa ,zvimaBond zvatitambudza ,vakaba maBillions USA variziii zvavo hapana chavanoitwa

  • Apa ndiyo the best pakugadzira

  • @Rangarirai shuwa ngaende KUCOTCO, raw material yakazara.Zimbabwean business people vanoda poritics stereck.May they want the. May be vakanyimwa tender naMinister veGender and Women Affairs yekuita maPads evasikana muzvikoro

    • unofunga nemhata iwe

    • Ko ndatadzai mangwanani ano.Varwere vepfungwa shuwa

    • Unoti dai paiidiwa donje rega kambani ingavhara hre varikuziva zvavarikureva nekuti pakugadzira mapads ndopanobva kudya kwemuridzi chaiye wekamba saka handioni sekut angadekuuraya mhuri yakewo hazvisi zvekut mapads anopihwa vanhu mahara ka anotengeswa zvoreva naiye anotoidawo mari uye papad hapana donje chete ka kut rizoita pad panezvinoitwa processing nemachines zvese izvo musangofunga donje chete kozvimwe

    • kana usina business mind unongoona zvese zvingori nyore sekupihwa donje ne cotco.

    • Nkosinam Vimbelela hauna pfungwa

    • Marvelous zvimwe zvinhu hazvidi kutukana, say your fact .80% of Farai raw materials are locally produced. Cotton inorimwa kuGokwe uko zvikanetsa kungonotora tega donje kuChitekete vanaFarai vovhara havo.

  • asi kutenga ma Rolls Roice..uku macompany achivharwa…machief achitengerwa ma Isuzu kb asi macompany achishaya mari yekutengesa zvinhu zvekuti agadzire..nyika iite..shame on this GVMT

  • i inga pakaipa . if authorities knew how important sanitary is especially to women

  • Oh noo this is sad

  • sad 🙁

  • demonitize those faeces called bond notes….mangudya knows nothing

  • Their slogan: ‘We will create a millions jobs plus😂😂😂 instead its job losses…I will nt speak…

  • Very bad news. It used to make good quality products like pampers and pads

  • The government was warned about the bond note now look were we are going…register to vote please

  • Kiaran Knight

  • Very sad

  • Shame

  • In the meantime we have bought our chiefs cars using the scarce foreign currency.

  • Ibva vasikana vacha vinza mapeds akupera so solution kutozvivarira den uchivinza hako

  • Satan can u plz take your son Bob to hell coz we have heard enough on suffering ,,, make satan that u keep this Bob inside the tank of fire so that he cant jump out

  • Veduwe inga tight

  • Bad indeed and you hear some lunatic saying the economy is recovery apa haana kuregister kuvhota