DStv Considers Zimbabwe A Better Market Than Nigeria
South African pay-television and streaming company, Multichoice, considers Zimbabwe an important market that is better than Nigeria in terms of repatriation of earnings.
IOL reported that Multichoice has over the past year faced challenges in Nigeria, one of its biggest markets, in terms of repatriation of funds.
The company is now banking on economic and monetary policy reforms being implemented by Nigeria’s new President, Bola Tinubu.
Speaking in a recent interview, Multichoice’s chief finance officer Tim Jacobs said:
Zimbabwe is an interesting business for us and we don’t see the same challenges that we are facing in Nigeria.
Zimbabwe is better than Nigeria as we are collecting revenue in foreign currency.
Although Multichoice managed to repatriate cash from Nigeria throughout the year under review, it did so at a “premium” to the official exchange rate.
This is because the Nigerian Naira currency has been highly volatile in the past year as companies have had to resort to the parallel market to purchase US dollars for the repatriation of funds.
However, in Zimbabwe, Multichoice has been protected from this owing to its ability to collect revenues in United States dollars.
Multichoice operates DStv in South Africa and several others across Africa and GOTV in Nigeria as well as an online streaming service, Showmax.
The firm recently said that its rest of Africa operations “delivered a trading profit for the first time” since listing in 2019.
More: Pindula News
