Tanganda credits exchange rate liberalization
SAMANTHA MADE
Tanganda Tea Company Limited has hailed Zimbabwe’s exchange rate liberalization, saying it has eased pricing distortions and bolstered trade volumes, according to the company’s third-quarter trading update.
“The company has benefited from the liberalization of the exchange rate for pricing purposes,” said Sharon Kodzanai, Tanganda’s company secretary.
She added that the Monetary Authorities’ projection of less than 30% inflation by year-end hinges on maintaining exchange rate stability, improved policy coordination, and reduced external costs.
Tanganda reported quarterly revenue of US$5.6m, up 65% from the same period last year, though nine-month revenue fell 6% to US$13.7m from US$14.5m previously.
The company recorded a loss after tax of US$774,762 for the nine months ended June 2025, compared to a profit of US$1.2m in the prior year.
Kodzanai noted that bulk tea production of 6,826 tonnes was 6% below last year’s 7,294 tonnes, due to delayed rainfall early in the financial year.
Bulk tea export volumes dropped 19% to 3,646 tonnes from 4,504 tonnes, while packed tea and coffee sales of 1,200 tonnes were 8% below the prior year. “The sales volumes in the third quarter improved by 11% compared to the prior year, reflecting the easing of pricing distortions caused by exchange rate disparities,” she said.
The company’s agricultural operations were also affected by extreme weather.
Avocado production fell 47% to 2,121 tonnes following a hailstorm in November 2024, compounded by the biennial bearing phenomenon. Macadamia nut volumes declined 43% to 849 tonnes due to extreme heat, although exports of 520 tonnes were 5% higher than the previous year.
Tanganda has initiated an $8 million rights offer to raise capital, with Kodzanai assuring that shareholders and the investing public will receive ongoing updates.
Operational challenges persisted, including tight market liquidity and intermittent power outages. “The tight liquidity in the market resulted in low aggregate demand, especially in the formal retail sector. Intermittent power outages persisted during the quarter, adversely affecting the efficiency of business operations,” Kodzanai said.
Despite these hurdles, Tanganda remains optimistic about growth opportunities and the stabilizing effect of exchange rate liberalization on its pricing and operations.
