Story by Owen Mandovha
MACROECONOMIC stability and improved business conditions are boosting local industry, with equipment supplier Zimplow returning to profitability and planning to expand into the mining sector.
Speaking at the company’s Annual General Meeting in Harare on Monday, Zimplow Chief Executive Officer, Mr Charles Chaibva said a successful agricultural season, coupled with an improving operating environment, had helped the company recover from losses and position itself for growth.
“The just-ended season was a boon for us as we managed to make more sales. We were in a loss position, but now we are making profits for the first time in years,” he said.
Mr Chaibva said the company now intends to diversify into the mining sector, citing favourable commodity prices and an improved macroeconomic environment.
“Our strategy is to venture into the mining sector, which is booming due to firm commodity prices. The economic environment is allowing us to pursue these opportunities, especially the strengthening of the local currency and the availability of foreign currency, which is making our operations seamless,” he said.
Economic analyst Mr Malone Gwadu said Zimplow’s performance reflects the positive impact of a stable economic environment on local businesses.
“A stable currency is a foundation for growth. Many companies are doing well, unlike in the past when they were in perpetual survival mode. Zimplow’s performance is an example of how local companies are thriving under the current economic conditions,” he said.
The private sector continues to expand operations, supported by ease of doing business reforms introduced by the Second Republic to promote investment, industrialisation and the objectives of the National Development Strategy Two (NDS2).
