RioZim Limited (RIOZ.zw) 2018 Annual Report

We have extracted below the Chairman’s Statement from the 2018 annual report of  RioZim Limited (RIOZ.zw), listed on the Zimbabwe Stock Exchange:

Notwithstanding the implementation of progressive policies aimed at opening up the Zimbabwean economy for both local and international investment, and a concerted effort to achieve the same by Government, the year 2018 proved to be an extremely challenging year economically characterised by acute foreign currency shortages and severe inflationary pressures. Specific to the mining industry, the stipulated foreign currency allocations persistently remained far below the stipulated retention levels which were set by the Central Bank from time to time. This set the stage for a very difficult operating environment and an inability to procure necessary stocks from critical foreign suppliers. That period is the subject of a legal dispute between the Group, Reserve Bank of Zimbabwe and Fidelity Printers and Refiners (Private) Limited.

The situation, however, worsened as the year progressed and reached unprecedented levels as was depicted by the involuntary shutdown of all mining operations by the Company