Mishma Chakanyuka, Staff Writer 
Mining and agricultural equipment manufacturer, Zimplow Holdings Limited, says it has invested US$1,5 million in the expansion and revitalisation of its Bulawayo factory plant.
The diversified group’s chief executive, Vimbayi Nyakudya, told The Financial Gazette that the group has been investing in first-class equipment to produce competitive products in the country and the region.
“Since the beginning of last year, we have put US$1,5 million into the (Bulawayo) plant, and we will continue to do so till we get to a place where we are competitive throughout from the smallest product that we produce to the biggest …,” he said, adding that the Bulawayo plant is critical for the company to ensure the production of equipment to sell locally and also for export.
Group chief executive of Zimplow Holdings, Vimbayi Nyakudya, left, board member, Benjamin Kumalo, centre, and the company’s chief finance officer Charles Chaibva, prepare to cut the ribbon at the official opening of Trentyre’s Robert Mugabe branch in Harare recently.
“One of the most important things that we have focused on the Bulawayo plant is to ensure that we can export. To achieve that we need to be having a competitive product. We have been investing in the best in class, your plasma cutters, and automated holdings machines. We have generally been focused on improving the plant to ensure that all the products that come out of that factory are competitive not only in Zimbabwe but also in the region,” Nyakudya said.
The group recently listed on the Victoria Falls Stock Exchange (VFEX) and is optimistic that the migration will “attract quality international” investment.
“… it will enable the group to embark on capital raising initiatives in foreign currency, thereby boosting the group’s efforts to acquire new OEMs (original equipment manufacturers) concerning its three clusters,” chairman Godfrey Manhambara said.
“The group seeks to harness offshore settlement options on the VFEX, thereby enabling investors to repatriate their dividends seamlessly, whilst effectively managing the foreign currency risk that is inherent in holding shares as a foreign investor.”
During the five months ending May 31, 2023, sales volumes for the group’s local agricultural machinery under its Mealie Brand subsidiary improved by 70 percent in comparison to the prior year. Sales volumes for the export market however dropped by 38 percent in comparison to the same period in 2022.
“The good performance on the local market had an equally offsetting effect on the export shortfall as revenue was level against the prior year whilst the business unit swung from a loss position in the prior year to profit during the same period under review,” Nyakudya said.
In the group’s other subsidiary, Farmec, sales increased by 15 percent against the prior year’s performance for the period under review.
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