Zimplow preps for VFEX migration

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ZIMPLOW Holdings (Zimplow) is upbeat about its future as it prepares to migrate to the Victoria Falls Stock Exchange (VFEX), while it pursues a new original equipment manufacturer (OEM) after its exit from Caterpillar distributorship.
The diversified group believes listing on the US-dollar denominated exchange will also help the company to penetrate the regional market and enable it to build a strong international profile.

“As you know last year, we parted ways with Barloworld in our joint venture on Caterpillar representation, Barzem. We know that there have been a lot of questions around that issue… what are we doing about it.
“We are very clear that we are going to get a new partner to replace the Caterpillar franchise. This is something that is going to restore Zimplow’s presence in the infrastructure and heavy equipment sector.
“We are also about to migrate to VFEX. We have a special EGM (this week) where we are proposing to shareholders that we migrate from the Zimbabwe Stock Exchange to the Victoria Falls Stock Exchange,” the chairman of Zimplow, Godfrey Tsikayi Manhambara, told The Financial Gazette this week.
“We believe that migration plus the introduction of a new OEM to replace the Caterpillar franchise will once again put us back where we want to be. We are very optimistic, and very bullish as a business because our exposure is to the three segments; mining, infrastructure, and agriculture.
“Those are the three sectors that are driving Zimbabwe’s economy at the moment. So we are very bullish that our exposure to those segments will continue to propel us,” Manhambara added.
This, according to Manhambara, is part of the group’s repositioning strategy.
“What we also want to do this year is to be a lot more visible, as a brand, as a group. We have put in place the necessary strategies and people on the ground so that people begin to see us a lot more, people begin to feel us a lot more. Those are the things that we are very hopeful for going forward,” he said.
Zimplow’s distribution deal with earth-moving equipment brand Caterpillar was terminated last year. The group’s Barzem subsidiary exited the Caterpillar distributorship on September 30, 2022, due to “changes in strategic direction by both parties”.
After the termination of the dealership, Barzem was rebranded to Tractive Power Solutions (TPS). To date, Zimplow has secured service level agreements and repair and maintenance contracts among various onsite solutions with major fleet operators in the country.
The group has stated that it expects to have repositioned itself in the earth moving equipment sector by year end.