Local health drug importers owe suppliers $27m

22 Oct, 2018 - 10:10 0 Views
Local health drug importers owe suppliers $27m

eBusiness Weekly

HARARE – Local drug importers said on  Sunday they owe foreign suppliers $27 million due to inadequate foreign  currency allocations from the Reserve Bank of Zimbabwe, which was  risking drug shortages in the country.

The Pharmaceutical Wholesalers Association (PWA) said the debt had seen  suppliers suspending credit facilities, demanding prepayment for orders.

“The situation deteriorated over the past three months during which the  association was allocated five percent of the foreign currency it  needed,” the PWA said.

“Collectively association members owe foreign suppliers $27 million,  and this has led to the suspension of credit facilities and the  suppliers now demand prepayment for any new orders.”

Zimbabwe is battling foreign currency shortages as the economy is using  more hard currency that it is earning, forcing government to ration and  allocate the resource to critical sectors.

Challenges in procuring drugs have seen local pharmacies demanding  payment from consumers in hard currency which the majority have no  access to while some have also hiked prices in response to obtaining  currency exchange rates on the parallel market.

The association said it had in recent weeks been allocated $3.5 million  by the central bank, at third of which will go towards servicing the  debt.

“A weekly allocation of $2 million would be required to service the old  debt and make new procurements as we are also expected to supply  government requirements for essential medicines and medical equipment,” the PWA said.

While pledging to maintain price stability, the drug suppliers urged  consumers not to turn to parallel markets for drugs which might  prejudice their health. – New Ziana

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