South African cement company PPC Limited lost $23 million from blocked money stuck inside Zimbabwe. The Reserve Bank of Zimbabwe holds the funds but cannot release them to the foreign company. PPC wrote off the entire amount because officials doubt they will ever recover their cash. Zimbabwe's central bank faces severe foreign currency shortages that prevent normal business payments. Government rules make it nearly impossible for companies to move money outside the country.
The blocked funds problem affects many international businesses operating across Zimbabwe. Companies cannot access their profits or pay foreign suppliers through normal banking channels. Zimbabwe's Finance Ministry took over nearly $3 billion worth of these frozen payments from the central bank. PPC treats the money as a loan that may never be repaid despite keeping it on their financial books. Parliament members recently learned that the Reserve Bank cannot meet its foreign currency promises to businesses.
The blocked funds problem affects many international businesses operating across Zimbabwe. Companies cannot access their profits or pay foreign suppliers through normal banking channels. Zimbabwe's Finance Ministry took over nearly $3 billion worth of these frozen payments from the central bank. PPC treats the money as a loan that may never be repaid despite keeping it on their financial books. Parliament members recently learned that the Reserve Bank cannot meet its foreign currency promises to businesses.
