Fertilizer manufacturer Omnia loses R96m due to exchange rate losses

Fertiliser manufacturer Omnia has disclosed that its operations in Zimbabwe registered a loss of R96 million in 2021 owing to exchange rate losses.

However, Omnia maintains that Zimbabwe will remain a strategic investment destination, though the unstable economic climate requires management to be versatile.

The company says African governments are currently jostling to secure fertiliser for their smallholder farmers, in the face of expected shortages due to the ongoing Russia-Ukraine conflict.

The two countries are the main producers of fertilizer worldwide.

In the same light, fertiliser input materials have gone up by about 400% since January.

Apparently, farmers in Zimbabwe have been complaining about the high cost of inputs particularly fertilizer.

Zimbabwe’s economy is primarily agro-based, though the country is also minerals rich.

Zwnews