Zimbabwe has remained unpredictable for operations to foreign companies. Adcock Ingram recently assessed its operations in Zimbabwe.
Adcock Ingram is a South African company, manufacturing and distributing pharmaceuticals shared its skepticism.
“Operations in Zimbabwe remain unpredictable and investment may be required in the
short- to medium-term to recapitalise its facilities,” Adcork Ingram says in the Group Annual
Results.
“Consequently, the Board is assessing the viability of the Group’s continued presence in that country.”
Adcock Ingram, however, recorded a positive performance from Zimbabwe despite unpredictable operations in the country.
“Turnover in the Group’s enterprises in Zimbabwe and Kenya collectively increased by 7.5% to R222.6 million (2017: R207.1 million) and achieved a trading profit of R18.3 million, a good improvement on the R2.7 million reported in the prior year,” Adcock says.
“The positive performance is attributable in Zimbabwe to a significant improvement in demand for the top brands following improved stock availability, whilst the improvement in the Kenyan operation is due to strict management focus by the OTC Division from South Africa.”
Adcock, through Pharmalabs, has interests in Datlabs, a company that produces Cafemol, Panado, Solphyllex, and Lanolene Milk.
Due to lack of access to foreign currency, companies in Zimbabwe are challenged to get raw materials for production.
Consequently, foreign companies witness challenges in the repartition of funds for investors into the Zimbabwe business.