Masimba sees boost under extended currency regime

CONSTRUCTION firm Masimba Holdings says the recent multi-currency regime extension will unlock opportunities in infrastructure development.
The government extended the term of the currency system from 2025 to 2030.
“We welcome the extension of the multi-currency regime … This will enable the unlocking of opportunities in infrastructure development.
“However, in the short-term, the operating environment is expected to remain volatile on the back of tight liquidity and foreign currency challenges,” Masimba said in a trading update for the quarter ended September 30, 2023.
“Despite the difficult environment, the group is forecast to remain profi­table for the ­financial year ending 31 December 2023.”
The group’s revenue improved by 116 percent to $203,6 billion from the comparative period (2022: $94,1 billion).

The growth was on the back of an improved order book in roads and earthworks, mining, and housing infrastructure.
“Profi­tability in the period remained satisfactory, due to improved productivity efficiencies across the projects.
“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,” Masimba said.
“Capital and investment property expenditure incurred at US$3,5 million, was mainly to support the order book as well as a value preservation strategy.
“This was funded from a combination of internal resources and vendor supply credit facilities.”
According to the update, borrowings at the end of the quarter were equivalent to US$827 000, with US$322 000 denominated in foreign currency.
“The group’s safety, health, environment and quality systems performed satisfactorily with nil accidents in the quarter and year to date,” Masimba said.
Masimba said the operating environment remained constrained due to liquidity challenges during the period under review.
“These challenges were mainly driven by a tight monetary ­fiscal policy implemented by the central bank. The economy continued on a dollarisation trend, with foreign currency-denominated transactions constituting 80 percent of transactions.
“This was reported by the Zimbabwe National Statistics Agency. Inflationary pressures were on a downward trend, mainly driven by the stability of the foreign exchange rate market.
The Zimbabwe dollar appreciated value on the foreign exchange auction market, which closed the quarter at $5 466,75: US$1 from an opening position of
$5 769,13. As a result, the year-on-year blended inflation rate closed the quarter at 18,4 p