WestProp pushes for extension of multi-currency regime

CLOUDINE MATOLA

Real estate giant, WestProp Holdings Limited, is urging the government to extend the current multi-currency regime beyond the 2030 horizon—and to seriously consider making it a permanent feature of the economy. The call comes at a time when the business community is seeking long-term monetary clarity, and amid rising concern over constrained liquidity and the limited circulation of the Zimbabwe Gold (ZiG) currency.

The company argued that continued use of the United States dollar (USD) is critical for ensuring economic predictability, encouraging investment, and sustaining momentum in sectors such as real estate.

“The continued widespread use of the USD as an accepted currency further enhances economic predictability for the foreseeable future,” said Dr. Michael Louis, WestProp’s board chairman. “We hope the Government will extend its tenure beyond the current 2030 deadline and make it a decision to have a permanent multi-currency environment, thus removing any doubt and uncertainty beyond the immediate five-year horizon.”

Louis acknowledged the government’s tight monetary policy stance—designed to anchor inflation and stabilize the exchange rate—has succeeded in bringing macroeconomic stability. However, he warned that the same policies have come at a cost to liquidity, especially in the early part of 2025, which has slowed economic activity in sectors reliant on cash circulation.

“The government’s tight monetary policy stance aimed at anchoring inflation and exchange rate expectations has contributed to overall economic stability,” Louis said. “However, this has resulted in liquidity challenges in early 2025 and a decline in economic activity largely due to the amount of reserves put into the local currency, the Zimbabwe Gold (ZIG), which is not circulating into the main economy to create substantial growth.”

Zimbabwe currently operates under a multi-currency system legally anchored through 2030, with the USD and ZiG circulating side by side. But with the greenback accounting for the bulk of transactions in real estate, retail, and even public sector payrolls, business leaders like Louis are pressing for certainty well beyond the current policy window.

Despite the prevailing economic headwinds, WestProp reported a robust operational performance underpinned by strategic investments and forward-looking capital deployment. The company has taken bold steps to enhance its construction capabilities, improve resource efficiency, and reduce dependence on external contractors through the acquisition of heavy-duty equipment and the internalization of key services.

“The Group has further strengthened its operations by investing in freehold yellow plant and equipment through its internal division, West Development Company (WDC),” Louis said. “This division is tasked with insourcing equipment services while hiring out excess capacity to external clients, optimizing resource utilization.”

These investments, he said, are critical for ensuring timely delivery on large-scale developments, especially as demand for premium residential and commercial infrastructure continues to grow in Zimbabwe’s urban hubs.

One of WestProp’s most ambitious projects currently on the table is the construction of Zimbabwe’s first-ever regional shopping mall—an initiative that promises to transform the country’s retail landscape and create a flagship destination for global and local brands.

“Remaining steadfast in its strategic objectives, the Group is committed to launching Zimbabwe’s first-ever regional mall, ‘The Mall of Zimbabwe’, with groundbreaking anticipated by year-end,” Louis announced. “Exemplar, a JSE company, remains the Group’s original South African partners who are actively doing leases and redesign of the enlarged blueprint of the mall.”

The Mall of Zimbabwe, a long-anticipated development, is expected to attract both anchor tenants and international retailers, positioning Zimbabwe as a regional shopping and lifestyle destination. Louis emphasized that the company remains “cautiously optimistic” and is fully focused on delivering value for shareholders, customers, and communities.

In a strategic move to further reduce supply chain vulnerabilities and improve project timelines, WestProp has diversified into construction materials manufacturing. Two key developments in this space include the commissioning of TrustProp Aluminium and the launch of BrickFusion Manufacturing.

“The Group has successfully commissioned its glass and aluminium fabrication plant, TrustProp Aluminium, focused on producing high-quality materials tailored for the construction industry,” said Louis. “This facility will not only cater to internal project demands but will also serve external clients, ensuring better quality, cost efficiency, durability, and aesthetic excellence in its offerings.”

He added that the group’s in-house brick production facility, BrickFusion Manufacturing, is already addressing longstanding supply bottlenecks while maintaining high standards of material quality.

“Additionally, the Group has established BrickFusion Manufacturing, a brick-moulding factory designed to mitigate delays in brick supply while maintaining superior material quality for its developments. This strategic initiative aligns seamlessly with the Group’s ambitious ‘One Billion Bricks by 2050’ Vision,” Louis said.

The “One Billion Bricks” initiative reflects WestProp’s commitment to industrial self-sufficiency and signals a long-term pipeline of development activity that could reshape Zimbabwe’s residential and commercial architecture.

Financially, the company recorded a significant increase in revenue in 2024, reaching US$29.05m—an 80% surge from US$16.09m in 2023. The bulk of this revenue was driven by three major projects: Pomona City Residential Estate (US$15.61m), Pokugara Residential Estate (US$9.42 m), and Millennium Heights (US$4.02m).

These developments continue to attract strong market interest due to their modern design, flexible payment models, and strategic locations within the growing Harare northern suburbs.

However, profit for the year dipped to US$18.26m in 2024 from US$39.43mthe previous year. This decline was attributed primarily to a reduction in fair value gains on investment properties in associate entities, which had boosted 2023 figures.

Still, the underlying fundamentals remain strong.

“The results reflect the continued success of the Group’s mission to add value to the original land by enhancement of its use and resultant lifestyle offerings, reinforcing the company’s diversified approach to real estate investment,” the company noted.