Business News: Pepkor pulls out of Zimbabwe after R70 million loss

Business News: Pepkor pulls out of Zimbabwe after R70 million loss

As Zimbabweans battle to keep their heads above water amid an economic crisis, businesses are feeling the pressure. South African company Pepkor has opted to pull out of the country after recording millions in losses.

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With the worsening economic crisis taking its toll in Zimbabwe, Pepkor has opted to close up shop.

Fin24 reported that the brand, which operates under Power Sales in the region, had a challenging time and recorded a staggering R70 million loss.

In a statement issued in response to the decision to pull the South African retailer out of the country, Pepkor commented:

"The decision to exit Zimbabwe was based on the continued adverse macroeconomic conditions affecting trading and weakening currency. Management is in final negotiations with the relevant parties to conclude the terms of sale."

READ ALSO: Zimbabweans regress to charcoal in response to continuous power cuts

With the Zimbabwean dollar dropping in value, locally owned businesses operating in the country have recorded similar situations. Old Mutual and PPC, among other companies, have noted losses.

Briefly.co.za reported that businesses in the country are battling to stay afloat as electricity outages occur daily, lasting longer than when the lights are on. With production costs also rising, the situation shows no signs of a speedy resolution.

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Source: Briefly.co.za

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