VICTORIA Falls Stock Exchange listed earthmoving and farm implements distributor, Zimplow Holdings Limited, says it will leverage on opportunities emerging in the mining and infrastructure sector to unlock shareholder value.
In an interview with businessdigest last week, Zimplow chief executive officer (CEO), Vimbayi Nyakudya said he was confident mining equipment and infrastructure opportunities will bolster the firm’s operations.
In September last year, Zimplow terminated a decade long partnership with Caterpillar, the earthmoving equipment dealer, but Nyakudya said he still sees opportunities on that front.
“I look at the mining and infrastructure segment, which I am betting on for the future,” Nyakudya said after launching Valmec, a new unit for the business, as part of Zimplow’s portfolio diversification strategy.
“I am definitely confident, I am betting on the mining and infrastructure segment to result in the growth that we are looking for in the group.”
The Zimplow CEO said in the aftermath of the Caterpillar’s exit, the firm was pursuing a deal whose results will be announced soon.
“As you might be aware, that we had the termination of the Caterpillar dealership in September 2022, and following the discussion that ensued, we are (planning to) buy the shares that were owned by our joint venture partners,” he said.
“Within the next month we should have done or concluded on the acquisition of shares of the other partner.
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“After we are done with the acquisition, we will come back to give an announcement in terms of the acquisition initiatives that we have been putting as a management on this board,” Nyakudya noted.
Opportunities have been emerging in Zimbabwe’s mining industry since government announced in 2018 it was working on a plan to drive revenues from the sector to US$12 billion by the end of this year.
Government said last year it was on track to meet the target, after new mines opened, unlocking opportunities in the lease or sale of mining and infrastructure development implements for companies like Zimplow.
In a commentary to financial statements for the six months ended June 30, 2023, Godfrey Manhambara, the Zimplow chairperson said management was focused on the group’s ambition to be a one-stop shop for equipment solutions focused on earth moving and alternative power.
“The trading environment continued to be challenging in the first half of the year, caused by a depressed liquidity environment,” he said. “Furthermore, reduced spending on road construction projects affected the general level of activity in the infrastructure sector. This impacted adversely on the business activity.
“During the period under review, the group therefore focused on balance sheet preservation and cost containment. Strategically, the group is resetting to assert its status as the supplier of choice for agriculture, mining, infrastructure and automotive equipment solutions,” Manhambara added.
