AS Zimbabwe navigates its intricate economic landscape, top executives from the country's leading companies have shared their insights on the future.
Despite acknowledging the challenges, they expressed cautious optimism about prospects for growth and recovery.
The Zimbabwean economy has faced numerous headwinds, including currency reform induced-uncertainty, power shortages, inflation, and geopolitical tensions.
However, leaders from Rainbow Tourism Group (RTG), Zimre Holdings Limited (ZHL), Unifreight Africa, Zeco Holdings, Innscor Africa, and Dairibord remain committed to delivering value to shareholders and stakeholders, according to statements accompanying financial results for the half year ended June 30, 2024.
"The group remains optimistic about a strong second half of the year, driven by the industry's recovery, which typically occurs in the latter half of the year,” RTG chairman Douglas Hoto said.
"The strong recovery in international tourism at RTG hotels is expected to surpass the best-ever performance recorded in post-pandemic years."
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However, ZHL board chairman Desmond Matete struck a more cautious note.
"Given the challenging start to 2024, the Zimbabwean economy is likely to remain muted for the remainder of the year marked by continued uncertainty on currency reform, persistent power and energy shortages, inflation push and spill-over effects of geopolitical tensions disrupting the usual efficiencies of supply chain logistics for key commodities from traditional supply markets."
Despite these challenges, Matete remained positive about ZHL's prospects. "ZHL nonetheless remains positive that the measures the group has put in place... will ensure it remains relevant and profitable on a sustained basis.
“The group will be re-engineering and/or repurposing many of its properties to derive more value therefrom for the benefit of its shareholders while also preserving the history of the country pertaining to these important superstructures."
Unifreight Africa Limited chairman Peter Annesley shared similar sentiments.
"Looking ahead, we remain cautiously optimistic about the second half of the year. Our focus will continue to be on expanding our cross-border operations and driving revenue growth through increased capacity and enhanced service offerings,” he said.
“We are also exploring new revenue streams and opportunities to diversify our customer base further. While the macroeconomic environment remains uncertain, we are confident that our strategic initiatives, combined with the dedication of our team, will enable us to navigate these challenges effectively.
“We are committed to delivering value to our shareholders and stakeholders, and we believe that the steps we are taking now will position Unifreight for sustainable growth in the years ahead."
Zeco Holdings chairman Benjamin Rafemoyo anticipated business growth in the real estate sector, adding that the firm would continue to positively innovate in the competitive environment by pursuing new market segments.
Innscor Africa Limited non-executive chairman Addington Chinake emphasised the importance of achieving critical volume mass.
"As a manufacturing entity, the attainment of critical volume mass is vital to ensure that the necessary operating efficiencies and economies of scale can be achieved. Volume performance will therefore be a key area of focus for management in the year ahead."
Chinake also highlighted the need for policy consistency.
"The group remains cautiously optimistic on the medium to long-term prospects for the economy, and is hopeful that the authorities will pursue a pathway of implementing consistent and clear policies that encourage more market-determined outcomes, which in turn will allow for improved capital allocation decisions by industry."
Dairibord chairman Josphat Sachikonye prioritised cost reduction and export expansion.
"Given the persisting constraints within the operating environment, cost reduction has emerged as a paramount imperative.
Accordingly, concentrated effort will be directed towards minimising expenditures by targeting the major cost drivers," he said.
Sachikonye also emphasised the importance of commercialising toll manufacturing operations in South Africa.
"By capitalising on this cost-effective production model, we anticipate broadening our export reach and mitigating risks associated with domestic market fluctuations."
These leaders said they were committed to delivering value to shareholders and stakeholders, leveraging innovative business models, diligent cost management, and strategic initiatives to position their companies for sustainable growth amidst Zimbabwe's economic challenges.
Their optimism is rooted in the resilience of Zimbabwean businesses and the potential for growth in key sectors such as tourism, manufacturing, and real estate.
According to experts, the ability of Zimbabwean companies to adapt and innovate would be vital in overcoming the current economic headwinds.