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Business Reporter

Masimba Holdings says it acquired a land bank valued at US$3,6 million last year to bolster its properties segment’s strategic business focus.

Mr Gregory Sebborn, the group’s chairman in the 2021 annual report said Masimba Properties Limited, the group’s 100 percent owned unit was last year mainly focused on refurbishment of its industrial assets to enhance their earning capacity.

“As at the reporting date, refurbishments for one of the properties in Harare were substantially complete. Plans are underway to refurbish, in the new financial period, other properties in Harare, Bulawayo and Gweru,” he said.

Masimba Holdings is a Zimbabwean contracting and industrial group, providing innovative engineering and infrastructure client solutions to the agriculture, commercial, communications, housing, mining, water and transport sectors.

Mr Sebborn said during the year under review, the group established a quarry mining subsidiary, Stemrich Investments (Private) Limited, whose plant was commissioned in the fourth quarter.

“Its main purpose is the manufacture of stone aggregates which are key in road construction. It is expected that the cost savings associated with this investment will be evident in the next financial period,” he said.

Masimba is one of the five leading companies contracted to rehabilitate the Harare-Beitbridge highway.

Under the National Development Strategy (NDS1) strategy, the Government is targeting to increase the number of kilometres of road network converted to meet Southern Africa Transport and Communications Commission (SATCC) standards from five percent to 10 percent and to increase the length of the road network in good condition from 14 702km to 24 500km by 2025.

According to Mr Sebborn, roads and earthworks businesses have sustained the group’s contracting business, aided by water, housing and mining infrastructure.

He said during the year, the works were evenly spread between the public and private sectors.

“The Government’s renewed interest in infrastructure development was the key driver of growth for the road and earthworks order book.

“In addition, the contract periods improved from short term to medium-long term on the back of an improved operating environment,” he said.

The Government’s spending on infrastructure has been described as a panacea to Zimbabwe’s economic growth and development. The country has been forging ahead with modernizing the national transport infrastructure under the Emergency Road Rehabilitation Programme (ERRP).

Mr Sebborn said borrowings, to support working capital requirements, increased to $397 million from $121 million in 2020.

He said the group’s financial position strengthened to $11,403 billion from $7,454 billion in 2020 on the back of a deliberate effort by the board to preserve value through acquisition of property, plant and equipment, key to the group growth plans.

Mr Sebborn said the Group acquired plant and equipment of $766 million from $344 million in prior year and investment property of $398 million during the financial year.

The group recorded revenues of $7,355 billion in 2021, declining from $8,391 billion in 2020 resulting in a decline of 12 percent with the decline mainly due to the slow start of some key projects in the fourth quarter of the reporting period.