Almot Maqolo, Staff Writer 
CFI Holdings (CFI) says local procurement of raw materials has significantly increased its productivity and helped it save its much-needed foreign currency after cutting down foreign-sourced supplies to less than 20 percent of total procurement.
In the aftermath of the Covid-19 pandemic, local businesses have been reluctant to procure raw materials from foreign suppliers owing to trade disruptions that have been compounded by the Russia-Ukraine conflict which threatened to dislodge existing global supply chains.
The diversified agro-focused conglomerate with retail, farming, milling, and property development operations has made strides in promoting local procurement in the just ended year.
“Less than 20 percent of the group’s annual business is conducted with foreign businesses with the bulk of its offshore business done to procure and maintain the supply of ammonium nitrate fertiliser, specialised plant spares and enterprise resource planning (ERP) system, all of which cannot easily be sourced locally,” the group said in its 2023 annual report.
Itai Pasi, CFI Holdings acting chairperson
“Local procurement strengthens the local economy and meets the expectations of our communities. Increased local procurement has had the added benefit of reducing business disruption in recent years, especially after the Covid-19 pandemic.”
The firm’s inflation-adjusted revenues increased by 245,7 percent to $201,99 billion for the year ended September 30, 2023 from $58,43 billion in the previous year, reflecting the mismatch between rapid inflation of the Zim dollar during the year as compared to the subdued official inflation statistics.
Retail activities made up 76,3 percent of group turnover overall, followed by milling operations at 20,1 percent and farming operations at 3,4 percent.
Conversely, the group’s operating loss before financing costs, depreciation and impairment surged by 1,706.6 percent to $123,67 billion from $6,84 billion previously.
The diversified group said its long-term focus remain directed towards the development of low-cost housing delivery in Harare South in support of the government’s Vision 2030 development goals.
Unrealised exchange losses on the foreign currency denominated loans and creditors of the group totalled $139,5 billion compared to $7,2 billion in the prior period.
As a result, the group reported a $125,23 billion loss before taxes as opposed to a $3,06 billion loss before taxes the year before.
Accordingly, CFI net loss widened to $92,72 billion in the full year 2023 from $4,88 billion in the previous financial year, despite a surge in revenue.
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