Exclusive: Samsung closing down Zimbabwe office as forex problems intensify

Techzim is reliably informed that Samsung is closing down its Zimbabwe offices.

While this development might be as a result of its global plans to reduce its workforce, it’s impossible to ignore the fact that the economic situation in Zimbabwe has a strong bearing on this decision.

It is not viable for a company like Samsung whose products are all imports to do business in a country facing the currency problems Zimbabwe has right now. It is no longer lucrative for the business since there is a need for the revenues generated to fund re-stocking as well as for profits to be repatriated.

It is increasingly clear that businesses are finding this hard to do. Earlier this week, we reported that an Apple reseller in Zimbabwe has suspended all credit and won’t guarantee prices of products anymore even after customers pre-order and prepay for the products before they’re imported.

This is also the main reason why Huawei withdrew from the country earlier this year. Techzim is informed that Samsung will only have one individual representing it in the country, an arrangement similar to Huawei’s.

Samsung’s business in Zimbabwe will be handled through distributors, partners, vendors, agents as well as franchise stores.