Market upbeat as economy expects rebound

by | May 4, 2021 | Business, Local News, Politics | 0 comments

Nevanji Munyaradzi Chiondegwa

President Emmerson Mnangagwa`s visionary leadership and pragmatic approach to business has won him praise as he has scored an array of achievements, whose impact continues to be felt in the Zimbabwean economy.
Despite the Covid-19 induced national lockdown which disrupted business, most firms listed on the Zimbabwe Stock Exchange have defied that to post increased revenues and are upbeat about market rebound and economic growth.
They are reporting encouraging business momentum in the first quarter of 2021.
Those involved in Agriculture, Construction, mining and finance reported impressive figures underpinning the importance of the sectors and reforms introduced by the Second Republic in the same sectors.
Below are some of the glorious stories which capture Zimbabwe`s economic promise:
Zimplow Holdings Limited, an agroindustrial firm involved in the production and marketing of agricultural and industrial equipment in Zimbabwe and the region recorded a rise in revenue of 17 percent from ZW$ 2.3 billion to $2.7 billion. The Group operates five key divisions namely Barzem, Farmec, Mealie Brand, CT Bolts and Powermec.

Barzem limited, a local Caterpillar machinery dealer, recorded revenue growth of 47 percent and the operating profit also surged by 8 percent which was supported by a 4-fold growth in whole goods volumes.
CT Bolts, posted a 180 percent improvement in revenue with volumes growing by 55 percent across all product ranges.
Farmec, which deals in the distribution of Massey Ferguson tractors, combine harvesters, and related equipment, posted an impressive performance with revenue growing by 13 percent driven by the tractor and implemented volumes growth of 30 percent and 37 percent respectively against the prior year.

Tractor sales revenues were up 21 percent boosted by the introduction of the Massey Ferguson four-wheel-drive tractors in the lower horsepower range in Zimbabwe. Mealie Brand recovered in volume terms by 20 percent owing to the local implements sold. The only dent was Powermec, on the other hand, had its revenue drop by 23 percent compared to the previous year. This was largely due to improved power production which saw consumers switch to the grid away from generators.

Prospect Resources Limited closed the first quarter of 2021 with a US$3.3 million cash balance. The company which operates Arcadia Lithium Mine was also debt free despite being involved in a major expansion project of the same. The Arcadia project is now 70 percent complete. The favourable position is said to be driven by surge in electrical car sales in China, the second biggest economy in the world

Turnall Holdings a manufacturer and supplier of all your roofing products, fibre cement corrugated roofing, Ravenna concrete tiles, Spanish pavers, flower pots, garden decor, and AC pipe for water and sewer reticulation recorded a 9 percent sales volumes. This is supported by a surge in construction projects pushed for by the Government.

General Belting Holdings did not disappoint with total volumes up 10 percent from previous year. The Rubber division volumes were up by 78 percent, the highest in years.
GB Holdings Limited manufactures and distributes rubber and chemical products in Zimbabwe. It offers industrial chemicals for use in food and beverage, mining and heavy industrial manufacturing, transport and haulage, dairy, metal and water treatment, hospital and housekeeping, commercial and industrial laundry, and hospital and healthcare industries.

Dairibord Limited’s domestic foreign currency sales accelerated despite COVID-19 having its toll on operations. Total foreign currency revenue for Dairiboard was 123 percent and sales volumes were 12.5 percent.
There are also discussions for a merger and acquisition transaction with Dendairy under way.
Cement maker Pretoria Portland Cement reported a 10 percent surge in sales, platinum miner UNKI PGM production jumped 4 percent and construction giant Masimba Holdings revenue surged 248 percent. Another platinum miner Zimplats was listed as one of the safest investment portfolios.

Edgars’ Stores consolidated its dominance of the domestic market on Friday by adding a new Jet Stores outlet, defying fears of lukewarm demand for non-essential products as the COVID-19 pandemic enters its second year. Meanwhile, market performance in Zimbabwe pushed retail giant Pick n Pay to profitability.

National Foods Limited has a ZWL$1.2bn kitty for this year’s winter wheat contract farming scheme as it moves to secure critical raw materials for its operations in the wake of debilitating foreign currency shortages as well as reducing imports.

Rainbow Tourism Group is now debt-free after paying off outstanding debts during the year to December 31, 2020. This despite the Covid-19 national lockdown which affected the tourism sector hardest.

ZIMRA was not to be left out, as it was able to collect revenue beating its first quarter with reports now suggesting that the tax collector will meet its 2021 revenue collection targets. First quarter net revenue out turn was at ZW$88.26 billion against ZW$86.52 target. The ZIMRA 2021 Financial Year total revenue target was set at ZW$390.8 billion.

There is generally and expectation that the economic rebound will increase with Finance and Economic Development Minister Professor Mthuli Ncube now on a drive to engage and re-engage investors.
With the way things are looking, it can only be up from here.