Tesco cuts trade ties with Zimbabwe: company
Britain's biggest supermarket Tesco is to stop sourcing products from Zimbabwe due to international concern about the current political climate there, the company said in a statement Monday.
By Agencies |
LONDON: Britain's biggest supermarket Tesco is to stop sourcing products from Zimbabwe due to international concern about the current political climate there, the company said in a statement Monday.
"The amount of produce Tesco sources from Zimbabwe -- worth around one million pounds (1.3 million euros, 1.9 million dollars) -- is insignificant in terms of global trade and influence," the statement said.
"However, in the current circumstances, we have decided to stop sourcing any products from Zimbabwe as long as the political crisis persists in that country."
Britain's junior Foreign Office minister Mark Malloch Brown last weekend warned firms with interests in Zimbabwe that their activities could become more difficult as economic and other sanctions tighten.
Mining firm Anglo-American was last week under pressure over its investment in a platinum mine in Zimbabwe. English cricket's governing body also announced it was cutting ties with Zimbabwe and cancelling their tour here next year.
London has been vocal in condemning President Robert Mugabe's regime, particularly over last Friday's presidential election run-off, from which the opposition pulled out citing violence and intimidation from the ruling party.
Tesco, which is the world's third-largest grocery retailer and only last week said it would be "irresponsible" to cut support to small farmers in current conditions, described its decision as "difficult".
But it said they could not ignore growing calls from politicians that a pull-out would exert more pressure on Harare.
"In these circumstances, we think the right decision is to stop sourcing products from Zimbabwe until there is an end to the current political crisis," the retailer added, saying it would keep the decision under review.
Zimbabwean workers affected by the decision would be supported "by other means", they added.
Tesco employs some 250,000 people in Britain and runs more than 2,500 stores. Its operation in Britain accounts for nearly 80 percent of group sales and profits.
Its pretax profits for the financial year 2007-8 were 2.8 billion pounds.
"The amount of produce Tesco sources from Zimbabwe -- worth around one million pounds (1.3 million euros, 1.9 million dollars) -- is insignificant in terms of global trade and influence," the statement said.
"However, in the current circumstances, we have decided to stop sourcing any products from Zimbabwe as long as the political crisis persists in that country."
Britain's junior Foreign Office minister Mark Malloch Brown last weekend warned firms with interests in Zimbabwe that their activities could become more difficult as economic and other sanctions tighten.
Mining firm Anglo-American was last week under pressure over its investment in a platinum mine in Zimbabwe. English cricket's governing body also announced it was cutting ties with Zimbabwe and cancelling their tour here next year.
London has been vocal in condemning President Robert Mugabe's regime, particularly over last Friday's presidential election run-off, from which the opposition pulled out citing violence and intimidation from the ruling party.
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Tesco, which is the world's third-largest grocery retailer and only last week said it would be "irresponsible" to cut support to small farmers in current conditions, described its decision as "difficult".
But it said they could not ignore growing calls from politicians that a pull-out would exert more pressure on Harare.
"In these circumstances, we think the right decision is to stop sourcing products from Zimbabwe until there is an end to the current political crisis," the retailer added, saying it would keep the decision under review.
Zimbabwean workers affected by the decision would be supported "by other means", they added.
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Tesco employs some 250,000 people in Britain and runs more than 2,500 stores. Its operation in Britain accounts for nearly 80 percent of group sales and profits.
Its pretax profits for the financial year 2007-8 were 2.8 billion pounds.
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