Nampak regains control of estates
RYAN CHIGOCHE
Zimbabwe’s largest packaging manufacturer, Nampak Zimbabwe Limited, has regained control of its estates between Marondera and Mucheke, in Manicaland Province, appropriated by the government during the land reform programme in the early 2000s.
The company’s managing director, John Van Gend , confirmed the development saying the firm regained control of the estates on a 25 year lease following years of negotiations with the government.
He said the estates will be used for agriculture development.
‘’A 25 year lease has been signed with the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development on Maganga Estate, located between Marondera and Macheke, with effect from 1 January 2022. This enables plans to proceed with the various agricultural and horticultural development of the estate in line with the Government’s National Development Strategy 1,’’ van Gend.
The eviction notice at Maganga Estate has already been implemented, with families concerned being resettled in another part of the estate.
Despite the Covid-19 limits in effect for the first half of the year to 31 March 2022, the group saw a 16% growth in volumes over the previous year.
In its trading update for the six months to March 31, 2022, revenue for Nampak, was up 30% to ZWL$8.2bn from the same period in the previous year.
Sales volumes increased across the board, except in the commercial sector.
Margins, however, were squeezed resulting in a 4% fall in trading profit to ZWL$1.3bn.
The group units traded profitably in the reported period with treasury and cash flow management being the key focus areas.
Sales volumes were 23% higher than the prior comparative period at the printing and converting segment, Hunyani Paper and Packaging.
However, commercial volumes were 5% lower than the previous year as the unit faced scarcity of raw materials headwinds in the period,
Sales volumes climbed by 7% year over year for MegaPak in the plastics and metals segment due to growing demand in the large injection moulding and closures industries in the reported period.
CarnaudMetalbox sales volumes for the half year increased by 10% compared to the prior year.
Metals volumes increased by 14%, with food cans and crowns leading the recovery. Closures were 10% ahead of prior year due to improved demand.
In the outlook, the company said more needs to be done by the authorities to address the macro-economic challenges faced by businesses as they anticipate a slightly less difficult second half with the group remaining profitable going forward
