Mishma Chakanyuka, Staff Writer 
MASIMBA Holdings (Masimba) has applauded government policy interventions that have culminated in a stable foreign currency exchange rate regime, resulting in an improved environment for infrastructure projects.
This year saw the government implement a number of policies aimed at stabilising the exchange rate and taming inflation.
Some of the policies include hiking interest rates to 200 percent, introducing gold coins and tightening money supply growth.
“Towards the end of the quarter, month-on-month inflation decelerated to 3,5 percent, which was largely attributable to policy interventions,” Masimba said in a trading update this week.
The measures have also been credited with stabilising the exchange rate as the local currency has been shedding and gaining insignificantly on the official foreign exchange market.
During the quarter that ended September 30, 2022, Masimba’s revenue improved by 70 percent on the back of an improved order book in the roads and earthworks, mining and housing segments.
The contracting and industrial company’s profitability in the period remained satisfactory, despite inflationary cost pressure increases.
“The business maintained favourable liquidity and gearing ratios through the implementation of robust and stringent working capital strategies, notwithstanding the liquidity constraints that prevailed in the market following the temporary suspension of local payments by the national treasury,” Masimba said.
The group incurred a capital and investment property expenditure of US$7 001 358 aimed mainly to support the growing order book as well as a value preservation strategy.
Masimba said the capital and investment property expenditure was funded from a combination of internal resources and vendor supply credit facilities.
“The group has a firm and well-balanced order book with average tenures of between three to twelve months,” the construction firm said.
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