Axia upbeat as business reforms bolster investor confidence
STAFF WRITER
Axia Corporation says the Government’s ongoing ease-of-doing-business reforms are beginning to restore investor and market confidence, with the group projecting a firmer operating environment over the medium term.
The Government is rolling out wide-ranging measures to streamline business processes, cut regulatory costs and harmonise licensing systems across key sectors such as wholesale and retail, tourism, transport and agriculture. The reforms include consolidating permits, slashing fees and simplifying compliance frameworks.
Axia — one of Zimbabwe’s largest retail and distribution groups, with brands such as TV Sales & Home, Transerv and Distribution Group Africa — believes the improving macroeconomic stability and regulatory consistency are laying a stronger foundation for sustainable business growth.
The company said its optimism was anchored on a relatively stable Zimbabwe Gold (ZiG) currency, contained inflation and consistent policy signals. Introduced in April last year, the ZiG has helped support predictable pricing and corporate planning, with the currency averaging around ZiG26,7 to US$1 throughout the year. Authorities say the exchange rate’s movement from ZiG15,35 per US$1 as at September 30, 2024 remains part of the currency’s transition phase.
Axia noted that foreign currency access across its Zimbabwean operations remained strong, with most of its sales being US dollar-denominated. This has enabled the group to self-fund the bulk of its import requirements.
“Management remains hopeful that progressive policies regarding ease of doing business and improved regulatory landscape will be reinforced to foster stability in the market, leading to the gradual building of market confidence. The group is focused on growing its market footprint to bring convenience to our customers and the provision of suitably priced quality products,” said Axia Corporation in a trading update for the first quarter ended 30 September 2025.
The group said maintaining policy consistency and strengthening regulatory reforms would be crucial in boosting consumer confidence and driving long-term business growth.
Axia’s retail and distribution subsidiaries delivered mixed results for the quarter, although most units recorded strong volume-driven revenue growth supported by competitive pricing, new store rollouts and expanded product offerings.
The flagship subsidiary posted a 14 percent rise in revenue, buoyed by a 31 percent increase in volumes to 45 580 units. The performance was driven by new branches opened in Churchill, Mvurwi, Norton, Hogerty and the Factory Shop, along with broader product ranges.
The bedding manufacturing unit recorded 28 percent revenue growth, matching a 28 percent rise in volumes to 16 140 units. Growth was underpinned by wider distribution channels, deeper market penetration and increased uptake in the business-to-business segment.
The lounge division underperformed, with revenue declining 13 percent and volumes down 22 percent to 1 170 units. The company attributed the slump to reduced production output in August after relocating operations to Sunway City, which temporarily disrupted manufacturing.
