The Chronicle

BULAWAYO, Tuesday, August 11, 1992 — Radio manufacturing companies in Zimbabwe are seriously considering lowering prices of radios in a bid to avoid folding up as sales have gone down by 50 percent since the beginning of the year.

This could result in companies losing an average of $10 million in sales by the end of the year.

A spokesman for World Radio Systems, Zimbabwe’s largest radio manufacturing company, said in Bulawayo recently that business in the industry has slumped so badly that some companies were being threatened with closure.

The spokesman blamed the downturn on business on the current economic hardships that have caused people to ignore luxurious items such as radios.

“Our main problem is that we manufacture a luxurious commodity yet people can no longer afford to buy anything else other than the most basic commodities.

“Our products are competing on the same market with food, clothing and health facilities whose prices are themselves beyond the workers’ reach,” said the spokesman.

He said that another problem facing the radio manufacturing industry was the flooding of the local market with imported radios.

“We know very well that Zimbabweans prefer to buy imported goods no matter how expensive,” he lamented.

He said the industry was one of the few that had not yet considered retrenching workers but he noted that it was an issue which could not be avoided in the near future if radio sales do not improve.