Phillip Chiyangwa’s company, ZECO Holdings Limited has recorded yet another loss, this time of ZWL$0.886 million according to the Financial Statement for the 6 months ended June 30 2019.
The company incurred a loss despite cost containment efforts to reduce costs according to Chiyangwa, who is also the ZECO’s chairman.
“The group mainly relies on infrastructure projects and construction material, due to challenging economic environment, the group’s performance was adversely affected as no major projects were undertaken during the period under review due to inflationary pressures resulting in the suspension of major projects,” Chiyangwa said.
The company has been $1,587,328 loss in 2018, an improvement from $2,133,797 in 2017.
ZECO chairman also said a number of projects were either delayed or shelved due to changes in Zimbabwe’s fiscal policy.
“The Government of Zimbabwe, through Statutory Instrument 142/2019 issued on 24 June 2019, introduced the ZWL$$ as the sole tender for trading and settlement for domestic transactions. This has resulted in a number of projects, which the Group was poised to benefit from, being either shelved or delayed,” Chiyangwa said.
“Annual inflation reached 175.66% in June 2019 and the Government has discontinued publishing the year statistics, a phenomenon that will make measurability of performance very difficult.”
“The period under review remained highly volatile for business operations as it was characterised by significant policy changes in a market faced with foreign currency shortages, tight liquidity and high inflation,” he explained.
ZECO’s non-current assets as at 30 June 2019 amounted to ZWL$$31.652 million according to the Financial report.
“The Group will continue to innovate and maximize on any opportunity which avails itself including prospects of linkages with local and regional players,” Chiyangwa said.