Mishma Chakanyuka, Staff Writer 
Powerspeed Electrical (Powerspeed) says the ever-increasing regulation, complexity, and rising cost of doing business will continue to threaten its business.
Zimbabwe has seen several policy measures implemented over the past months to boost confidence in the local currency, which has been on a free fall, with formal businesses feeling the heat.
Powerspeed said it is benefiting from the boom in residential construction in the country.
“The ever-increasing regulation, complexity, and rising cost of doing business is steadily undermining the formal business sector in Zimbabwe,” the company said in its financials.
“Conversely, the informal business sector is not subject to many of these difficulties, which is driving the informalisation of the economy.
“This trend will continue to threaten our business along with all other formal businesses.”
Meanwhile, Powerspeed said it is benefiting from the boom in residential construction in the country.
“Strong funds flow from the diaspora is driving a boom in residential construction throughout the country, which is, in turn, driving demand for building materials.
“We have substantially improved our ability to service this market and we expect continued growth from this source,” the company said.
The company continues to focus on its branch development programme and will be opening a substantially improved and expanded branch in Msasa.
“Our new building in Zvishavane is nearing completion and we will be opening this within the next quarter,” Powerspeed said.
During the six months ending March 31, 2023, the company moved its branch in Avondale from the small premises in the main shopping centre into a brand-new building behind it. The building is also the company’s biggest branch, with 2 860m under its roof.
Powerspeed highlighted that turnover at this branch has been growing steadily with good customer feedback.
“A continued focus on ensuring maximum product availability and increased product range and choice has, once again, provided an increase in volume over the same period the previous year.
“The market, however, is not growing and there is significant competitive pressure on pricing as well as growing consumer demand for cheaper, lower quality products, which is driving margins lower.
“This problem is exacerbated by the growing informal trade in our market segment,” the company said.
