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