ART Holdings Limited Faces Export Setback

Audrey Galawu

Assistant Editor

ART Holdings Limited, a leading player in the manufacturing and energy storage sectors, has announced a challenging year in its financial and operational performance for the period ending 30 September 2024.

The company faced significant headwinds, with export volumes falling by 15% compared to the previous year, primarily due to continued foreign currency shortages across key regional markets.

The persistent issue of currency constraints, particularly in Zambia and Malawi, severely impacted ART’s ability to settle international trade obligations, causing delays in payments and hindering the smooth flow of exports.

This slowdown in export activity has been one of the key contributors to the group's overall decline in revenue for the year.

Chairman of ART Holdings, Thomas Utete Wushe, highlighted the critical role that foreign currency availability plays in the company’s regional operations, saying:

"Our ability to maintain export volumes is directly linked to the availability of foreign currency. The ongoing foreign currency shortages in Zambia and Malawi have disrupted our ability to settle trade obligations in a timely manner, which has significantly impacted our export performance. This, in turn, has led to a 15% decline in export volumes, a challenge that we have been working tirelessly to mitigate."

Despite these challenges, ART has remained focused on restructuring its operations and adapting to the difficult market conditions.

The company’s other divisions, such as energy storage and stationery, showed resilience in the face of these disruptions, with the energy storage division seeing growth in industrial battery volumes by 16% despite the broader economic turmoil.

The group’s leadership has been proactive in addressing these economic issues, with strategic efforts underway to explore offshore trading facilities and secure alternative sources of foreign currency.

However, Wushe pointed out that, while these measures will help in the long term, the effects of the currency shortage remain a significant obstacle in the short term.

"Our regional market thrust remains strong, and we continue to identify new opportunities for growth. However, the challenge of foreign currency shortages cannot be underestimated. It is an issue that we are addressing with urgency, but the road to full recovery will require ongoing adaptation and agility.

“We remain confident that with continued restructuring and a focus on emerging technologies, we will recover and thrive in the coming years."

As ART Holdings moves into the next financial year, the company is set to continue its restructuring efforts, bolster its export strategies, and embrace new technologies to overcome the challenges posed by the volatile economic landscape.