NTS buoyant
ROBIN PHIRI
National Tyre Services (NTS) is buoyant about its growth prospects for the 2025 financial year, underpinned by rising demand in the commercial and transport sectors, alongside stability in Zimbabwe’s operating environment.
The company believes ongoing government road infrastructure projects, including rehabilitation works, will have a strong positive effect on the tyre industry.
“We are optimistic that the stability in currency and foreign exchange rate will prevail. The local currency has shown notable stability since its inception in April 2024, bringing improved pricing clarity and predictability to our business operations. We anticipate increased tyre demand, driven by the ongoing Government road infrastructure projects, including rehabilitation works, particularly in the commercial and transport sectors. The proposed measures to curb smuggling of goods, including tyres, will promote fair competition and support formal businesses,” said NTS chairman Richard Moyo.
As part of its strategy to strengthen competitiveness, NTS has rolled out a new supply chain model, broadening its product portfolio with affordable, high-quality tyre brands.
“National Tyre Services is upbeat and positive that the new supply chain strategy of importing affordable and meticulously engineered tyre brands is robust enough to achieve seamless stock supply and competitiveness,” Moyo said. “We have already witnessed growing customer preferences in our newly launched tyre brands, and we anticipate improved performance in the second half of the 2025 financial year.”
However, NTS conceded that it is not insulated from global headwinds such as tariff wars. The company recorded a steep decline in sales and profitability for the review period, with inflation-adjusted sales tumbling 25% to ZWG143.4m from ZWG191.7m. Gross profit plunged 41% to ZWG46m, while operating expenses narrowed to ZWG70.1m.
Loss before tax and monetary adjustments deepened to ZWG54.6m, compared to ZWG29m a year earlier.
Despite this, the company said it remains focused on unlocking value through its skilled workforce and technical expertise. Its buoyant outlook is also reinforced by macroeconomic stability, following new currency reforms by the Reserve Bank of Zimbabwe, which have helped control inflation and restore market confidence.
“Despite the challenges posed by the influx of cheap smuggled tyres, our retreading operations demonstrated resilience, with both our Harare and Bulawayo factories maintaining sustainable production levels throughout the year,” the chairman added.
