HARARE, ZIMBABWE — Following discussions with the Zimbabwe government and the Reserve Bank of Zimbabwe, National Foods did not shut down its flour milling arm as originally planned, according to news reports.
Industry and Commerce Minister Mangaliso Ndhlovu would not disclose details of the arrangement saying it was highly sensitive, Bulawayo 24 News reported.
National Foods, one of the largest food manufacturers in Zimbabwe, said in a letter to its customers that it planned to shutter mills in Harare and Bulawayo by Dec. 5. The company was unable to pay its suppliers due to a severe shortage of foreign currency.
Ndhlovu said in the discussions, the issues that National Foods had raised were all resolved.
“We are very optimistic about the economic outlook and the period leading to ZITF (Zimbabwe International Trade Fair),” he said. “I want to believe the measures that government is putting in place are aimed at fiscal consolidation and addressing the challenges that we are facing throughout, leading to October. We have decided as government that we will not perpetuate a situation that leaves us disadvantaged as an economy.”