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1. The Delta way
Companies are shutting down operations, the latest being the biggest makers of cooking oil, big brands like Olivine, Surface Wilmar (SW). It cites foreign currency shortages as the reason for its woes. Corporate peers have seen the effectiveness of the Delta way
Companies are shutting down operations, the latest being the biggest makers of cooking oil, big brands like Olivine, Surface Wilmar (SW). It cites foreign currency shortages as the reason for its woes. Corporate peers have seen the effectiveness of the Delta way
2. The Delta Way is to play hard-ball with government. When Delta, the beer and soft-drinks manufacturers abandoned the local surrogate currency & set prices in USD, the government panicked & promised to give Delta forex allocation. Others saw this & took lessons - Delta Way
3. SW could simply have sold its goods in foreign currency. It’s products are considered more basic & necessary in the average household than Delta whose products lie on the luxury end of the spectrum. But it has chosen the “nuclear option” that is, to shut down operations.
4. The strategy is designed to draw government into negotiation because this move will create more shortages of basics and job losses. If government could negotiate with Delta over beer and soda drinks, then it would be hypocritical to ignore SW over cooking oil & other basics.
5. This is the problem with a piecemeal, haphazard & thoughtless approach to policy-making. Government thought it was solving a problem when it stopped Delta from charging in USD. But it was merely opening up another hole. Maburi acho akawandisa haachavariki.
