Proplastics sees opportunity in El Niño drought
STAFF WRITER
Proplastics Limited, Zimbabwe’s leading plastic pipe manufacturer, expects to benefit from rising demand for irrigation infrastructure as the country braces for an El Niño-induced drought in the forthcoming agricultural season.
Zimbabwe is preparing for a potentially drier 2026/27 farming season, with authorities accelerating irrigation development to reduce the agricultural sector’s dependence on increasingly erratic rainfall.
Against this backdrop, Proplastics expects its products to play a greater role in water-security projects, including irrigation schemes for farmers as well as water infrastructure for human and livestock consumption.
The group’s chairman, Gregory Sebborn, said the company was well positioned to provide irrigation solutions as farmers and other stakeholders sought to strengthen resilience against the expected dry conditions.
“Given the forecast of an El Niño-induced drought for the forthcoming agricultural season, the group’s products are expected to play a key role in supporting government and other key stakeholders with their investment in water security projects for crop irrigation, as well as human and livestock consumption,” Sebborn said.
“Infrastructure development across all sectors is also expected to accelerate in the second half of the year, which coincides with the group’s traditional peak trading period.”
The government is targeting 496 000 hectares under irrigation by 2030, up from about 258 000 hectares currently, underscoring the potential market for irrigation-related infrastructure.
The opportunity comes as Proplastics delivered an improved financial performance in the six months ended June 30 2026.
Turnover increased 22% to US$11.7m, driven by a 23% increase in sales volumes. Exports contributed US$0.6m, or 5% of turnover, up 141% from the first half of 2025, in line with the group’s strategy to expand its export business.
Gross profit rose 19% to US$3.9m, while tighter overhead controls reduced the overhead-to-turnover ratio to 25%, from 27% in the comparable period.
Finance costs fell 56% year on year after the group significantly reduced its borrowings.
As a result, profit before tax increased 50% to US$0.9m, while profit after tax rose 79% to US$0.6m.
The balance sheet remained stable, with total assets increasing to US$26.6m.
Cash generated from operations rose 29% to US$1.6m, from US$1.2m a year earlier, supported by improved profitability and stronger working-capital management.
The group invested US$343 000 in capital expenditure during the period and paid US$520 000 towards its 2025 final dividend.
The operating environment remained mixed during the six months.
Globally, heightened geopolitical tensions in the Middle East continued to put pressure on supply chains and input costs, with disruptions to PVC resin supplies, together with volatility in fuel and raw-material prices, presenting particular challenges.
Sebborn said that while these factors were beyond the group’s control, Proplastics had activated alternative sourcing and procurement channels to safeguard margins and maintain supply continuity.
Locally, trading conditions remained relatively stable and supportive of business activity.
The economy remained largely dollarised amid persistent shortages of local currency, despite the introduction of higher-denomination notes in April.
Proplastics generated 97% of its revenue in US dollars, with the remaining 3% denominated in Zimbabwe Gold (ZWG).
The official exchange rate averaged 27 during the period.
Despite the external headwinds, the group said it delivered solid growth during the first half, supported by disciplined execution and resilient demand across its market segments.
Looking ahead, Proplastics said it would remain focused on navigating market volatility, protecting margins and enhancing shareholder value.
