Chiyangwa’s ZECO Holdings reports moderate revenue...

Chiyangwa’s ZECO Holdings reports moderate revenue growth

Nyashadzashe Ndoro

Listed engineering firm, ZECO Holdings, a diversified conglomerate, has reported moderate revenue growth despite a challenging operating environment.

Businessman Phillip Chiyangwa is the major shareholder at ZECO.

In its update for the third quarter ending September 30, 2024, the Zimbabwe Stock Exchange listed company's revenue stood at ZWG 941,913.40, representing a 52% increase from ZWG 621,867.75 recorded in the same period last year.

The company's real estate business, however, experienced a decline in shop occupancy rates, dropping to 30.77% from 48.14% in the same period last year. ZECO Holdings attributed this decline to the current economic climate but expressed optimism that occupancy rates will improve with ongoing marketing efforts and renovations.

Administration expenses accounted for 15.24% of total costs, while property expenses stood at 8.24% for the quarter.

ZECO Holdings cited inflationary pressures and slower GDP growth, projected at 2.0%, as significant challenges facing the economy. The slowdown is largely attributed to the El Nino-induced drought, which resulted in below-average agricultural output.

Looking ahead, the company expects tight monetary conditions to persist due to measures introduced by authorities. However, ZECO Holdings anticipates an improvement in economic conditions during the last quarter, driven by rising commodity prices.

"We expect the tight monetary conditions to persist at the back of measures introduced by authorities with an improvement in economic conditions during the last quarter on the back of rising commodity prices. Under the conditions, we expect new business and we will continue to positively innovate in the competitive environment by pursuing new market segments.," the company stated.