Chiyangwa Blames Zimbabwe’s Economy for ZECO’s Performance

Chiyangwa Blames Zimbabwe's Economy for ZECO's Performance
Image Credit: Newsday

ZECO Holdings Limited chairman Philip Chiyangwa said the subdued financial results reflect the challenging environment that was prevailing  in 2018.

The group reported a $1,587,328 loss for the year 2018 an improvement from $2,133,797 last year.

“The macroeconomic environment in 2018 was a tale of two halves where the period up to October 2018 was characterized by stable, subdued, but challenging environment with apprehension caused by the harmonized elections as investors held a wait-and-see attitude,” Chiyangwa said.

“Post October 2018 environment was characterized the by shortages of hard currency, tight liquidity and increasing costs of raw materials which were a result of far-reaching economic policy interventions by the authorities.”

ZECO also created a loss before tax of $1,426,014 loss in 2018 an improvement from $1,914,189 in 2017.

The group generated revenue of US$0.620 million compared to $0.513 million in 2017.

“Revenue could not cover operating costs in spite of cost containment resulting in a negative bottom line of US$1,587 million, a slight improvement as compared to the US$2,133 million loss recorded in 2017,” Chiyangwa said.

The company’s asset base stood at US$38,231 million.

Despite the loss, Chiyangwa reflected some positive changes due to government conduct in the future.

“Positive policy pronouncement and re-engagement of the international community by the new Government will most likely result in positive economic growth and Foreign direct investment into the country,” the Zimbabwean business tycoon said.

“The group envisages entering into positive partnership arrangements within the country and the region as revamping of the country’s railways take place with a positive spill over to the Group. Positive linkages with foreign players look more realistic this year.”

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