Almot Maqolo, Staff Writer 
AXIA Corporation (Axia) says its diesel consumption has significantly dropped thanks to a strategic decision to diversify its energy mix and evade over dependance on “costly” diesel-power generators amid rolling electricity cuts in the country.
Zimbabwe has endured prolonged power blackouts of up to 16 hours per day this year resulting in industry incurring additional costs from use of alternative sources of energy-mainly diesel.
In its annual report for the period ended June 30, 2024, Axia said its diesel consumption declined by 33 percent to 1,03 million liters from 1,53 million liters in 2023, reflecting a deliberate effort to control fuel-related costs and lower carbon emissions.
In 2022, Axia consumed 664 046 litres of diesel.
“We learnt that relying solely on diesel power can be expensive and we are now transitioning to a blend with solar energy to reduce our environmental footprint,” said Axia in its annual report.
“To monitor progress, we track monthly energy bills and printing costs, which have shown our branch managers’ commitment to keeping costs low has been effective.”
Zimbabwe’s energy crisis is due to antiquated infrastructure from decades of lack of meaningful investment into the sector.
In addition, the country has not been able to diversify its energy mix into the national grid, relying on traditional hydro and thermal energy sources.
Power cuts have resulted in loss of production time, decline in worker productivity, increased costs for businesses seeking alternative power supplies, and damage to industrial equipment.
Axia’s 2024 annual report however shows a notable increase in electricity consumption, with usage rising by 33 percent from previous year. The company consumed 3,074,931 kWh of electricity in 2024, up from 2,319,519 kWh in 2023.
This substantial rise may reflect expanded production activities, new facility requirements, or increased reliance on electric-powered equipment within Axia’s operations.
As for financials, Axia reported revenue of US$193,84 million, a five percent decline compared to 2023, attributed partly to revenue dips in Zimbabwe’s distribution sector, which saw a 23 percent reduction.
Despite the revenue decline, the company managed a two percent increase in gross margin, suggesting improved efficiency or better cost management within its operations.
Operating profit came in at US$19,64 million, down six percent from the previous year. Inflationary pressures, both in local currency and USD-denominated costs, led to a five percent increase in operating expenses.
This increase was compounded by one-time costs associated with restructuring, including write-offs in debtor and inventory balances, especially in the distribution business.
