Zimplow to leverage on agric growth
Agriculture and mining implements firm, Zimplow Holdings Limited, is angling for continued growth that will be underlined by agriculture, mining and infrastructure which are all key pillars of the National Development Strategy (NDS).
The NDS1 2021-2025 is expected to spur economic growth as the country moves to achieve an upper middle income economy by 2030.
Its macroeconomic objectives are among others to achieve an annual GDP growth rate of above 5 percent, improve infrastructure development and investment in energy, housing, water, roads, health, social amenities and accelerate value addition and vaccination of agriculture and mining production.
Zimplow chairman Godfrey Manhambara said the group had strategically positioned itself to benefit from this anticipated economic growth.
Its business model, he said, dovetails with the strategy.
“We do embrace the NDS1, our customer segments comprise of three sectors that is mining, agriculture and infrastructure,” he said while responding to questions by journalists on the sidelines of the group’s annual general meeting held in the capital recently.
“This country is agriculture dependent, we are also ramping up our mining industry to boost economic development. Our infrastructure has degraded in the last 20 years. It is clear we are serving segments with potential to grow and we are also not surprised that Government anchored the NDS1 on these pillars.
“So in a way our own business model dovetails with the Government plans and we are hopeful we will reap the benefits from these sectors that we serve,” he said.
Management also remains upbeat of maintaining the current growth trajectory in this financial year and going forward with measures put in place to limit the impacts of supply chain disruptions caused by Covid-19.
“We remain hopeful about our projections for 2021,” said Manhambara.
During five months to May 30, 2021 profitability grew 90 percent compared to same period in the prior year on improvements in volumes across business units.
Barzem recorded a 140 percent growth in earth moving equipment backed by activity from the construction sector.
Volumes at Farmec improved following a good 2020/21 rainfall season and the firm producer pricing for grains and tobacco. Tractor and implements sales volumes grew by 119 percent and 97 percent respectively against prior year for the same period under review.
Parts sales volumes went up 38 percent and workshop capacity utilisation improved by 6 percent against prior year.
At Mealie Brand, sales volumes grew across its product range with local implements sales registering a 93 percent increase ahead of prior year.-ebusinessweekly.cl.zw
