The group in a statement said a task force, led by the head of Econet Wireless Global, Tracy Mpofu, who is based in South Africa, is working in Zimbabwe to ensure the successful implementation of a major cost cutting exercise.
“Any supplier who sells goods or services to Econet Wireless Zimbabwe must cut prices by at least 15 percent or will be blacklisted as a supplier with effect from the end of July,” said Econet.
“We ourselves were forced to lower our prices by 40 percent, so if our suppliers don’t cut their own prices, we will go out of business,” he said.
Mr Mboweni added that even subsidiaries of the company, such as Steward Bank and Mutare Bottling Company, have also been ordered to do the same.
“Econet has also cut its capital expenditure programme by 25 percent for the current financial year while staff have voluntarily had their salaries cut by 20 percent,” he said.
Mr Mboweni said Econet was a strong company which had the capacity to weather any storm and has carefully analysed the prevailing economic environment.
“We have taken the corrective measures to protect the business. We urge others to emulate our example by being proactive rather than to just sit and watch helplessly,” he said.
According to Mr Mboweni, the group-wide cost cutting initiatives are expected to go on for several months. herald