Zimbabwean equity counters pin hope on government





HARARE – The Zimbabwe Stock Exchange (ZSE) listed companies expect the Government to sustain the current general economic stability in 2022 for business to thrive and make significant contributions to the country’s growth prospects.

Several companies registered growth and profitability this year, underpinned by Government’s consistencies in policies despite Covid-19 offsets.

The companies listed on the local bourse represent all sectors of the economy, hence stock exchanges are not only used as a platform in order to carry business transactions, but they are the barometers that help in indicating the general conditions of the business atmosphere.

Selected listed companies through their quarterly, half year and full year reviews are optimistic of maintaining growth trends only if the Government is able to continue on the path it demonstrated this year when it managed to stabilise inflation and the exchange rate.

Compared to figures up to July this year, inflation has been increasing on a decreasing rate, giving a resemblance of some stability that enable planning.

Agro-focused concern, CFI Holdings said the Group is committed to playing its role in anchoring and underpinning food security in the country.

“The Group looks forward to Government’s assistance in resolving some legacy value chain constraints in the interest of supporting the resurgence of local agricultural production.

“Priority will also be given to the development of low-cost housing delivery in Harare South in support of Government’s Vision 2030 on housing,” the company said.

CFI said it is encouraged by the positive trajectory the economy is on, and hopes that the mild resurgence in inflationary pressures will be contained through further policy alignments, collaborative dialogue with industry and other stakeholders in order to restore business confidence and safeguard significant achievements attained since the introduction of the foreign currency auction system.

National Tyre Services (NTS) on its part said it remains optimistic that the country will find effective measures to stabilise foreign exchange currency, manage inflation and generate enough electricity to power the industry.

“Current road infrastructure development and continued investment in productive sectors will create lucrative opportunities for tyre business,” said NTS, adding that the Company will remain focused on ensuring that there are adequate mitigatory measures in place to control the spread of the Covid-19 pandemic, thus complementing business operations in a sustainable manner.

Turnall Holdings, which has strong focus on the construction industry, is optimistic that the business will improve in 2022 driven by good prospects in the construction sector. The company said it will focus on innovation in products and services with an objective to offer continuous improvement in convenience and customer satisfaction through a rich product mix in roofing such as Slates, Ecotiles and Pantiles.

“The company is investing in a new model plant that will improve the product variation and automate production processes. The migration from Fibre cement pipes to Glass Re-enforced Pipe (GRP) manufacturing is at an advanced stage. The impact of the Covid-19 pandemic has not created any serious issues from a solvency or liquidity perspective,” the company said.

Leading financial services group, CBZ Holdings, said although Covid-19 risks continue to linger, the group has built the necessary infrastructure and adopted an operating model that enables it to seamlessly respond to changes in the operating environment.

“Most Governments began loosening the Covid-19 lockdown induced restrictions, thanks to increased vaccine uptake and declining infection levels. In Zimbabwe, the authorities relaxed the restrictions from level 4 to level 2, thereby enabling resumption of economic and business activity on a large scale.

“The Government’s investment in infrastructure projects among them road rehabilitation further stimulated business activity in beneficiary sectors such as construction, manufacturing and transport. This, in turn, widened the business opportunities available to the Group,” the group said.

 Econet Wireless Zimbabwe, said the group has entered a new phase on its digital transformation journey, with exciting new possibilities ahead.  

“We are investing into artificial intelligence (AI), machine learning and gamification as we seek to better understand our customers’ needs and expectations. Our investment is not only in our systems and platforms but also in the human capital that will drive the business to the next stage of evolution in the digital transformation journey,” the company said.

Delta Beverages said the businesses in Zimbabwe are geared to exploit the opportunities to grow volume and profitability on the back of improved access to foreign currency through domestic nostro sales and firmer aggregate demand.

“The improved food security, reduced pressure on food imports and access to additional foreign currency from the International Monetary Fund allocation of Special Drawing Rights (SDR) will promote consumer spending,” the company noted.

Delta, however, noted that the operating environment is expected to remain complex as the country begins to focus on the 2023 general elections in the circumstance of difficult economic policy choices. It said this may be further complicated by the Covid-19 pandemic which remains a factor into the short-term.

Bindura Nickel Corporation (BNC) which recently migrated to the Victoria Falls Stock Exchange (ZSE) said it has an ambitious capital program to raise capital for development projects.

The projects include shaft deepening at Trojan Mine, re-develop the US$200 million Hunters road project and removing Shangani mine from care and maintenance.

RioZim is of the view that the vaccination programme spearheaded by the government continues on an upward trajectory towards achieving herd immunity as the supply of vaccines remains consistent. But the Company remains focused on the completion of its BIOX Plant Project and the Group continues to channel all resources necessary to bring the project to completion. – Business Weekly