Story by Davison Vandira
Government’s budgetary support to productive sectors of the economy has had a positive impact on company profitability as evidenced by financials released over the past month.
An analysis of financial performance results posted by local firms over the past month makes for some positive reading with direct benefits of the government’s budgetary support to productive sectors.
One of the local firms, which has several subsidiary companies, Zimplow Holdings has immensely benefited from government expenditure on mining, agriculture, and construction projects.
For the year under review, the company increased its operating profit by 119 per cent, which culminated in an overall growth of 10 per cent.
The company’s group chief executive officer, Mr Vimbayi Nyakudya highlighted that the firm’s outlook is reliant on continued government expenditure towards productive sectors which will ultimately trigger the efficacy of the industry in general.
“As we are reviewing the financial year 2022, we are greatly thankful for government budgetary support on key sectors of the economy that managed to give us business and this symbolises a synchronised economy where one sector triggers another and the cycle cascades down to everyone in the economy. Our outlook as a company is very positive as we anticipate that government projects are ongoing for a foreseeable future,” he said.
In line with its expansion programme, Zimplow Holdings will next month migrate from the Zimbabwe Stock Exchange to Victoria Falls Stock Exchange in its endeavour to raise working capital to adequately support its financial needs for the expansion of operations.