Latest news with #MasimbaHoldings
IOL News
12 hours ago
- Business
- IOL News
Growth prospects shine in Zimbabwe and South Africa's construction markets
Construction markets in Zimbabwe and South Africa are on a growth trajectory, with PPC poised to capitalise on emerging opportunities despite challenges in liquidity and project execution Image: Leon Sadiki/Bloomberg Tawanda Karombo Construction markets in Zimbabwe and South Africa are expected to continue on a growth trajectory, providing a strong background for companies such as PPC that are ramping up competitiveness to stand better prospects against imports. Data from researchers on Tuesday showed that the South African cement market reached approximately 13.78 million metric tons in 2024 and 'is expected to grow steadily' over the coming 10 years, with an annual growth rate of 2.50% projected from 2025 to 2034. Zimbabwe has also seen a booming construction sector with government projects and the retail sector, as well as residential housing sector providing impetus. This was benefiting construction industry companies such as cement and brick manufacturers among others. Matias Cardarelli, the CEO of PPC, said the company was cautiously optimistic of the infrastructure plans under South Africa's government of national unity (GNU). He explained that the construction sector was a major driver of the economy through job creation and other activities. 'We believe that the administration is aware of that and that makes us optimistic we are going to see that (construction and infrastructure growth) happening in the short term,' said Cardarelli. Regarding Zimbabwe, where PPC is progressing with a solar power plant, Cardarelli said the construction market was growing on a yearly basis. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Construction companies in Zimbabwe are maintaining a stronger order book although they have to cherry-pick contracts in order to manage credit risks due to a liquidity crunch, especially in the public sector. For example, Masimba Holdings, formerly Murray and Roberts Zimbabwe, recently said its 'contracting order book remained robust, particularly in the roads' sector. 'However, a lack of liquidity within the market hampered effective execution, leading to cash flow challenges and an increasing debtors' book. This constrained the business' ability to fund ongoing projects and manage operational expenses, causing delays in project execution,' said the company. PPC has been flying high in Zimbabwe over the past few years, raking in the dividends. According to Cardarelli, the Zimbabwe construction market has continued to notch up steady growth. 'So in Zimbabwe, what we are seeing is also a market that is steadily growing year after year and we are not expecting to see any change to that,' he told Business Report. PPC has just recorded an improvement of 6% in Earnings Before Interest, Taxes, Depreciation, and Amortization (Ebitda) margins for Zimbabwe. A new solar power plant is being developed in Zimbabwe on an offtake basis to enable PPC to power up its operations in the midst of rolling power outages that are disrupting productivity.
Zawya
07-04-2025
- Business
- Zawya
Zimbabwe grapples with US$1.2bln debt to infrastructure contractors
Speaking in Parliament on Wednesday, Finance Minister Mthuli Ncube acknowledged the payment delays to Members of Parliament, attributing them to 'cash constraints.' The delays are having a tangible impact on public infrastructure projects, including critical road construction, leading to stalled progress. According to NewZWire, Masimba Holdings, a major government contractor, recently highlighted the 'liquidity challenges' hindering project execution despite a strong order book. The company further warned that if these financial constraints persist, Zimbabwe's economic growth could face a 'shift toward contraction in the short term.' Ncube addressed concerns raised about the slow pace of payments. He stated that the Treasury is actively 'working out payment plans for contractors' and emphasized the government's commitment to settling the arrears. The Minister cited recent payments, including approximately US$30 million allocated for the Harare-Masvingo-Beitbridge Road and Greater Harare roads, and US$35.2 million towards dam construction projects. He also mentioned settling around US$17 million in arrears in other unspecified sectors. Ncube highlighted the government's role in the growth of local construction companies since the advent of the 'Second Republic' seven years ago, suggesting a strong partnership. 'If you go back, let us say seven years ago, when we came in as the Second Republic, most of these contractors did not exist. They almost were created from scratch and capacitated and empowered through these Government infrastructure programmes. 'So, they too are grateful and they work very well with Government but of course, if you are in arrears, you are in arrears. Those arrears ought to be settled. 'We have been settling these arrears bit by bit and we keep going on and keep encouraging them to take on new work and they are doing that while we settle these arrears,' Ncube stated. Opposition Citizens for Coalition Change MP Corban Madzivanyika expressed skepticism regarding the sustainability of the current payment pace, given the substantial US$1.2 billion debt. He relayed concerns from the Zimbabwe Building Contractors Association about the apparent mismatch between the amounts being paid and the scale of the outstanding obligations, questioning whether the current approach is sufficient to facilitate expected development. In response, Ncube reiterated the existence of 'payment arrangements' and a 'constructive relationship' with the contractors. He expressed the government's intention to improve the payment program for greater consistency and affirmed the commitment to continue payments until all arrears are cleared. 'As I said, we have payment arrangements with these contractors,' the Minister stated. 'We have a very constructive relationship with them and we will continue on the current payment programme but I also seek to improve that programme so we can be more consistent. 'We already owe the contractors. They are doing some good work and they are doing further work. The relationship continues. We will continue paying until we clear these arrears. There is no difficulty in terms of clearing the arrears.' © Copyright The Zimbabwean. All rights reserved. Provided by SyndiGate Media Inc. (
