_____________________________________________________________________________________________________ *Corresponding author: E-mail: ngendakumanal@africau.edu; British Journal of Economics, Management & Trade 6(2): 102-111, 2015, Article no.BJEMT.2015.046 ISSN: 2278-098X SCIENCEDOMAIN international www.sciencedomain.org The Impact of Working Capital Management on the Profitability of Smart Bags Limited Manufacturing Firm in Zimbabwe Leonidas Ngendakumana 1* , Nelson Jagero 2 and Francis Gondo 3 1 Department of Economics, Africa University, P.O.Box 1320, Mutare, Zimbabwe. 2 Department of Resource Development and Education, Chuka University, Chuka–Kenya, P.O.Box 109 Chuka, Kenya. 3 Department of Small and Medium Enterprises, Ministry of Small and Medium Enterprises and Cooperative Development P.Bag 7740 Causeway, Harare, Zimbabwe. Authors’ contributions This work was carried out in collaboration between all authors. Author FG carried out the study, and wrote the first draft of the manuscript. Author LN supervised the study, conducted all the revisions and carried out all the review processes as required by the numerous journal’s reviewers. Author NJ provided guidance and necessary expertise. From time to time, author NJ conducted a proof reading of the entire work. All authors read and approved the final manuscript. Article Information DOI: 10.9734/BJEMT/2015/14078 Editor(s): (1) Suk Hun Lee, Finance Department, Loyola University Chicago, USA. Reviewers: (1) Anonymous, Joseph Ayo Babalola University, Nigeria. (2) Anonymous, University Tenaga Nasional, Malaysia. (3) Anonymous, National Institute of Technology Calicut, Calicut, Kerala, India. Complete Peer review History: http://www.sciencedomain.org/review-history.php?iid=812&id=20&aid=7254 Received 18 th September 2014 Accepted 4 th November 2014 Published 15 th December 2014 ABSTRACT Since the adoption of the multiple currencies, the Zimbabwean economy has been on a growth path, however liquidity challenges have been stifling further growth prompting most businesses to reposition themselves. With the liquidity situation worsening, it has become important for businesses to understand how working capital management, as a key business driver, is impacting performance of their businesses. This research project seeks to critically examine the impact of working capital management on the profitability of manufacturing firms in the multi currency environment in Zimbabwe using the case of Smart Bags (Pvt) Ltd. The paper makes an attempt to study the relationship between measures of working capital management efficiency and profitability. Original Research Article