KFC Zimbabwe closes because of ‘lack of US dollars’

1/7/2019 1:10:59 PM

KFC’s outlets in Zimbabwe’s cities of Harare and Bulawayo had to close down temporarily, because suppliers demand to get paid in US Dollars. Dollars are the currency of choice today in Zimbabwe, as prices of basic goods have risen by at least 50 percent. 

Signs at the KFC outlets stated: ‘we are unable to source stock from our suppliers as they require US dollars’. AfricaNews/Reuters report that the main problem for the country is “the $17 billion domestic and foreign debt, a $1.8 billion trade deficit that has worsened dollar shortages”.  

The government has announced that the World Bank and the International Monetary Fund (IMF) have approved the country’s plans to clear more than $2 billion in foreign arrears. 

Zimbabwe abandoned its own currency in 2009, adopting the use of foreign cash. In 2016, in a bid to ease the continuing cash shortage, the government issued a surrogate currency known as ‘bond notes’. 

Further reading on africanews.com 

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