Masimba Holdings Limited has reported a solid start to its 2026 financial year, posting revenue growth of 13% for the first quarter despite adverse weather conditions, liquidity constraints and rising input costs in Zimbabwe’s construction sector.
In its Q1 2026 interim financial update, the group said revenue rose to US$8.8 million, supported by strong project execution and a diversified order book spanning both public and private sector contracts. Profit after tax increased by 12% to US$453,000, reflecting improved operational efficiency and disciplined cost management.
The company’s liquidity position remained stable during the period, with the current ratio recorded at 1.42 and the quick ratio at 1.26, showing marginal improvement from the previous financial year end.
Despite the positive financial performance, the group acknowledged a challenging trading environment, including weather-related disruptions and tightening market liquidity. The report noted that “management remains proactive in managing its working capital position to sustain financial stability amidst prevailing market liquidity constraints.”
Capital expenditure during the quarter stood at US$2 million, directed mainly towards the acquisition of new hauling and trenching equipment to support ongoing infrastructure projects. The investment signals continued efforts to strengthen operational capacity and improve project delivery efficiency.
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However, the update also highlighted broader macroeconomic pressures affecting the construction industry. These include limited availability of local currency liquidity, inflationary pressures driven by rising fuel costs, and uncertainty around contractor payments in local currency.
The company warned that “a tight monetary policy has continued to strain market liquidity, compounded by the limited availability of ZWG,” underscoring ongoing funding challenges in the domestic economy.
Operational risks were further compounded by environmental and safety concerns. Above-normal rainfall affected project timelines, while the company also reported a fatality during the period.
Management said it responded with “a comprehensive investigation, implementing enhanced safety protocols, corrective measures, and preventative initiatives to further strengthen its safety culture.”
Despite these challenges, Masimba Holdings maintained a positive outlook for the remainder of the year, supported by a strong pipeline of infrastructure work and expected economic growth.
The company anticipates that a projected 5% GDP growth rate and increased mining activity will help sustain demand for construction services.
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