Harare: Zimbabwe faces another round of flour shortages and eventually bread and other confectionery products, one of the country’s biggest agro-processing giant warned on Tuesday.
Chief Executive Officer of National Foods Michael Lashbrook said wheat suppliers were refusing to deliver the product on credit but cash payments in foreign currency.
Zimbabwe owes suppliers several hundreds of thousands dollars United States dollars in outstanding payments for wheat deliveries owing to foreign currency challenges.
“Unfortunately, due to delays in the repatriating payments to our foreign wheat suppliers, our wheat suppliers have today instructed National Foods to immediately cease drawn down of wheat stocks,” Lashbrook said in a statement.
Zimbabwe requires 38 000 metric tonnes of wheat per month.
“National foods will not mill out the wheat in process, and we anticipate both our mills in Harare and Bulawayo to close on Wednesday, 5th December.
“National Foods will supply the limited stock it has on hand but we regret to advise that unless the payment situation is rectified we expect to be out of Bakers flour later this week,” Lashbrook added.
In June, millers raised the red flag, warning of bread shortages as they were running out of wheat before the government availed $11 million for imports.