Construction business continues to face uncertainty with the rising inflation in Zimbabwe.
Willdale Limited, Company Secretary, Mavuto Munginga says stability in the macroeconomic factors of the economy is required for an improved operating environment.
“The depreciating Zimbabwe dollar, which moved from ZW$87.67 to the United States dollar at the beginning of the quarter to ZW$108.67 at the end, and rising monthly inflation which reached 6% for December continued to cause uncertainty in the business environment,” Munginga said.
“Business activity in the construction sector was affected by a shift in spending patterns as consumers adjusted to the prevailing economic situation.”
Willdale sales and revenue volumes declined in the company’s First Quarter ended 31 December 2021.
“Sales volumes decreased by 20% compared to the same period in the prior year, but are 5% above budget,” Munginga said.
“Decreased offtake from cluster home developments and lower activity from institutional buyers impacted on volumes.”
Munginga went on to say that the subdued volumes resulted in a 7% decline in revenue for the quarter compared to the same period in the prior year in hyperinflation terms.
Despite the challenges faced, Willdale expects sales volumes to rebound as more construction activities resume after the rainy season.
“Production should reach targeted levels provided there is sufficient electricity supply,” says Munginga.
