Companies

Masimba: Cyclone Idai project on course

TAURAI MANGUDHLA

Zimbabwe Stock Exchange listed contracting firm, Masimba Holdings, says it is on course to complete two multimillion dollar projects in Manicaland after key infrastructure was damaged by Cyclone Idai last year.

An estimated 10,097 homes were destroyed by the catastrophe of 2019 with more than 43,000 people still displaced.

Hundreds died while others are still missing. CEO, Canada Malunga, said millions had been spent on the Skyline project including opening alternate routes while the original roads were being rehabilitated.

He said another project, a 17km road construction venture, about 32 km outside Mutare after the Mashamvura tollgate is set to be completed by September.

The 17km stretch is on the Marange-Zvipiripiri road which goes all the way to Buhera.

The road is commonly known in province as Binya road.

The company has invested in new equipment including a reclaimer or road recycler to improve efficiencies and reduce project time.

“It is the first project this reclaimer is working on,” Malunga said, adding…..” from here it will move to Chimanimani and then to the Masvingo-Beitbridge highway where we are doing a 20km stretch.”

Masimba Holdings contacts director, Moffat Nyamhingura, said the road project is worth ZWL$11 million.

However, the cost will be adjusted accordingly in line with inflation. He said they are using the latest road construction technology.

Last year, Malunga said inflationary pressures had forced the group to either shelve some of its projects or slow down the pace of implementation.

Zimbabwe’s implied annual inflation rate breached the 500 percent mark late 2019.

In its latest update for the nine months to 30 September 2019, Masimba said the economy has continued to experience significant volatility, as evidenced by the removal of the multi-currency regime and the introduction of the Zimbabwe Dollar (ZWL$) as the sole legal tender, persistent shortages of foreign currency and the continued weakening of the ZWL$ to the US$ exchange rate as well as prevalent shortages and erratic supply of fuel and electricity in the country with no end in sight.

“Projects scheduled to commence in the period under review have either been delayed or wholly suspended. Running projects are being executed at a much slower pace due to shortages of building material,” the company said in the update.

Masimba Holdings said capital expenditure and capital in progress incurred to date amounted to ZWL$13,725,919 and was mainly comprised of capacity to improve on civils and roads construction projects.

The capital expenditure was largely funded by internal cash resources and external long-term borrowings and, as at end of the reporting period, borrowings were at ZWL$1,668,640 (2018: ZWL$1,772,473).

The order book at ZWL$530 million, as at 30 September 2019, was boosted by the awarding of the rehabilitation and widening of a section of the Beitbridge to Harare highway

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