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Foreign currency shortage forces closure of car plant

    JOHANNESBURG

    Zimbabwe’s biggest car assembly company announced an indefinite closure at the weekend because of a shortage of foreign currency to import components, PANA reported on Tuesday.
    Willowvale Mazda Motor Industries (WMMI) said it had also been forced to close down because of plummeting demand for new cars. Zimbabwe is facing its worst economic crisis in 20 years of independence, with unemployment, inflation and bank interest rates all above 60 percent.

    Low exports have also led to a critical shortage of foreign currency, forcing many companies to scale down production. An official of WMMI said the company will not re-open in January when it closes for the annual holiday shut-down next month, “until the trading situation improves.”

    Demand for new cars has fallen by more than 80 percent because of cheaper second-hand vehicle imports mainly from Japan. Industry analysts say many companies in Zimbabwe will follow suit and remain closed in January after the holidays due to lack of demand for their products and an inability to buy in spares and raw materials.

    This article was produced by IRIN News while it was part of the United Nations Office for the Coordination of Humanitarian Affairs. Please send queries on copyright or liability to the UN. For more information: https://shop.un.org/rights-permissions

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