Firms downbeat about operating climate

LOCAL companies expect the operating environment in Zimbabwe to remain challenging in the medium term on the back of declining disposable incomes amid persistent currency volatility.
Companies listed on the Zimbabwe Stock Exchange and the Victoria Falls Stock Exchange said the third quarter of the year was characterised by liquidity constraints, as banks and major businesses had to delay major capital funding transactions.

Most companies commended the government on extending the multi-currency regime, saying it would provide certainty and boost confidence.
According to trading updates for the third quarter ended September 31, 2023, the exchange rates were relatively stable following the tight fiscal measures and monetary policy interventions implemented during the pre-election period.
National Foods said while volumes and the general trading environment had both recovered compared to recent quarters, the overall trading environment remained challenging.
“Specifically, costs continue to increase in real terms and we are largely unable to recover these costs from the consumer with our desire to grow volumes. Consumer spending power continues to be impacted by the generally constrained liquidity. With this in mind, it remains imperative that we continue to drive operational and cost efficiencies across our various manufacturing platforms,” the country’s largest food manufacturer said.
ZB Financial Holdings said the domestic economic outlook remained “volatile and uncertain, including severe currency devaluations, tight money supply and fiscal space and high inflation levels in the market”.
“Despite these hurdles, the group remains resilient and committed to fully implementing the Organisational Transformation Programme strategies, anchored on a ‘customer-centric’ business model offering a one-stop shop financial services solution to its customers in the newly restructured service centres.
FBC Holdings also bemoaned the challenges that prevailed in the operating environment.
“The group will align strategies to ensure value preservation, revenues growth through diversification and alignment of processes to improve efficiency and ultimately achieve sustainable growth,” the diversified group said.
Axia Corporation said although the local operating environment remained challenging the specialty retail and distribution group remained hopeful that progressive policies regarding money supply, exchange rate and interest rates would be reinforced to foster stability in the market and gradually build conf