The company’s director, Louis Pinto, told The Zimbabwean that Chinese imports were flooding the market and putting a strain on business. “We have been affected by the unfair competition generated by the informal sector because they don’t pay import tax and therefore deprive the government of much needed revenue. We urge the government to monitor the sector,” he said.
Pinto said the company had been facing working capital shortages for years, which made it difficult for the company to import raw materials needed for the production of shoes.
“Our biggest challenge is lack of working capital to purchase raw materials. We are required to pay our raw materials in advance and this makes our operations more difficult,” he said. He said the company accessed lines of credit from sister companies in South Africa and Kenya to boost its coffers and purchase raw materials.