Brickmaker Willdale says it remains optimistic about its short-to-medium-term growth prospects, buoyed by robust construction activity in residential cluster housing, commercial facilities, and educational infrastructure development across Zimbabwe.
In a trading update for the quarter ended June 30, 2026, Willdale said sustained appetite for building materials has established a solid demand baseline, even as operational constraints limited the company’s ability to fully serve the market.
“Brick demand is expected to remain strong in the short to medium term, driven by ongoing cluster housing projects and the construction of commercial and educational facilities,” Willdale said.
“The anticipated issuance of permits for the remaining land banks in the fourth quarter is expected to unlock additional funding for operations, supporting improved production efficiency, lower operating costs, and capacity utilisation of at least 70% from the current 35%.”
Revenue for the quarter increased marginally by 1%, largely due to limited stock availability. Management expects improved working capital in the fourth quarter to support higher output and accelerate revenue recovery.
“Average selling prices increased by 8% during the quarter, resulting in a year-to-date increase of 16%, in line with the target sales mix. Improved working capital availability in the fourth quarter has supported higher production levels, which is expected to drive revenue growth going forward,” Willdale said.
The group said plant availability remained satisfactory during the quarter, with extrusion volumes increasing by 11% and fired production rising by 44%.
Despite these gains, Willdale said operations were constrained by limited working capital. Sales volumes declined by 4% due to insufficient stock availability amid strong market demand.
The group said industrial stand sales decreased by 18% compared to the previous quarter, reflecting prevailing market conditions.
To capture unmet market demand, management is executing liquidity initiatives to fund operations and capital expenditures.
Willdale said proceeds from land sales, including progress on Phase 1 of Haydon Industrial Park, targeted for completion by the end of September 2026, continue to supplement cash flows.
Additionally, the expected issuance of regulatory permits for Haydon Phase 2 and Tenerife land banks in the fourth quarter is slated to unlock further funding.
“Development of Phase 1 of Haydon Industrial Park progressed well and remains on track for completion by the end of September 2026,” Willdale said.
The group said construction activity, particularly in housing and infrastructure development, remained strong during the quarter, sustaining demand for bricks and related building materials.
It highlighted that competition intensified as new brick manufacturers entered the market, although demand remained robust.
Zimbabwe recorded over 2.3 million kilogrammes of sesame sales valued at approximately US$1.84 million during the 2025/26 marketing season, latest data shows.
According to the Agricultural Marketing Authority (AMA), the marketing season officially closed last week, with all sales formally processed through registered buyers.
“AMA commends all farmers, contractors and value chain stakeholders who contributed to the continued development and formalisation of Zimbabwe’s sesame industry,” AMA said in a statement.
To protect the growing market, the regulator intensified compliance monitoring across production zones to curb illegal side-marketing and enforce orderly trade.
During regulatory operations, the authority issued seven compliance tickets totaling US$7,000 for various violations.
Furthermore, enforcement officers confiscated 26,096.33 kilogrammes of sesame, valued at roughly US$18,630.80, which was subsequently auctioned in accordance with regulatory procedures.
With the current marketing period wrapped up, focus has shifted toward the upcoming 2026/27 summer cropping season.
AMA directed all registered and prospective contractors to submit their seasonal production and contracting plans within the prescribed timelines.
The regulator reiterated its long-term strategy to partner with growers, contractors, and government bodies to boost yields, strengthen regulatory compliance, and position sesame as a strategic, export-oriented commodity for the nation.
Cable manufacturer Cafca posted a 147% increase in profit before tax for the nine months ended June 30, 2026, driven by improved operating leverage and cost containment measures that cushioned the company against global supply chain shocks.
The Zimbabwe Stock Exchange-listed group said year-to-date revenue increased by 31% compared to the same period in the prior year.
Top-line growth was supported by stronger overall sales volumes and upward price adjustments implemented to offset rising input costs, which surged 36% year-to-date due to raw material cost pressures.
“Sales volumes for the year to date improved by 20% compared to the previous year. Local volumes were up 21% whilst exports were up 8% due to better conversion of the opportunity presented by the stable trading environment,” Cafca said in a trading update.
The group said third quarter volumes were up by 32% compared to the same period prior year, reflecting improving trading conditions despite escalating costs of raw materials emanating from the supply chain shockwaves.
Looking ahead, Cafca maintained a positive outlook for the remainder of its financial year, citing sustained domestic monetary stability, export expansion opportunities, and ongoing investments across domestic productive sectors.
Nampak Zimbabwe reported a 9% increase in group revenue to US$67.8 million for the nine months ended June 30, 2026, driven by a 16% growth in overall sales volumes.
The growth was largely supported by strong carry-over demand for tobacco packaging in the first quarter.
The country’s leading packaging products supplier said metal packaging volumes declined significantly compared to the prior year due to subdued market demand and raw material supply chain disruptions.
Nampak managing director John Van Gend said volumes are, however, anticipated to improve modestly across all the business units in the final quarter of the financial year.
“While overall sales performance improved, metal packaging volumes remained below prior-year levels, and commercial carton volumes continued to be impacted by certain customers transitioning to in-house manufacturing capabilities,” he said in a trading update.
Despite the revenue performance, Van Gend said profitability remains under pressure due to rising costs and competitive market pricing to compete effectively given changed market dynamics.
Volumes at Hunyani Corrugated Products division for the nine months ended June 30, 2026 were 26% above the prior year, supported by a larger tobacco crop that increased carton volume demand in the first quarter.
At Mega Pak, volumes for the nine months ended June 30, 2026 were 8% above the prior year, reflecting the positive impact of increased demand in the quarter under review.
CarnaudMetalbox volumes were 4% above the prior year for the nine months under review as the business recovered from extended production-related stoppages in the first quarter.
Van Gend said heightened geopolitical tensions in the Gulf region and the ongoing Russia-Ukraine conflict are expected to sustain operating cost pressure across all the business units in the medium term.
He said the recent anti-immigrant demonstrations in South Africa may negatively affect regional economic activity through increased repatriation of foreign nationals and disruption to diaspora remittance flows.
“Despite these challenges, the group expects to benefit from the larger tobacco crop, within the paper segment, as well as continued volume recovery in the plastics segment,” he said.
“Management remains focused on strengthening operational efficiency, optimising costs and enhancing cash generation to support sustainable business performance and profitable growth. The group remains ungeared.”
STAKEHOLDERS across Zimbabwe’s agricultural, financial and industrial sectors will gather next month for the two-day National Agriculture Conference and Expo (NACE) 2026, aimed at accelerating domestic food security, climate resilience and export competitiveness.
The high-level event is being organised by the Ministry of Agriculture, Mechanisation and Water Resources Development in partnership with the Agricultural Marketing Authority (AMA) and regional development think tank Africa Economic Development Strategies (AEDS) as the official research partner.
Held under the theme, “Transforming Agriculture for Resilience, Investment and Inclusive Growth,” the conference —scheduled for September 17–18, 2026, at the University of Zimbabwe’s Diamond Conference Centre—will address critical bottlenecks across the country’s agro-value chains.
The indaba will evaluate long-term strategies to position Zimbabwe as a primary regional food hub.
Conceived as a strategic interface between Government agencies, private enterprise, development partners and research institutions, the conference moves beyond general dialogue, delving into concrete implementation pathways under the Agriculture, Food Systems and Rural Transformation Strategy 2 (AFSRTS-2).
A major highlight of the summit will be the official launch of the Agricultural Investment Prospectus, designed to showcase bankable opportunities across priority value chains and infrastructure while offering a structured pipeline for domestic and international investors.
In addition, researchers will present the State of the Agricultural Sector Study, delivering an evidence-based assessment of sector performance, emerging risks, and market trends to guide national policy decisions.
Organisers emphasise that the platform will facilitate direct public-private dialogue to eliminate regulatory constraints, align public resource mobilization behind the 2026–2030 transformation agenda, and firmly position Zimbabwe as an investment-ready agricultural economy.
Initial sessions will examine how shifting global geopolitical dynamics impact international commodity markets, establishing a foundation for policy discussions on domestic food security.
Delegates will evaluate strategies to maximise agricultural potential and resolve operational constraints across key crop sub-sectors, including grains, oilseeds, sugar, and poultry.
Discussions will also centre on the future trajectory of Zimbabwe’s tobacco sector, focusing on methods to align with evolving global market demands while advancing environmental sustainability and equitable growth for local producers.
Recognising that primary production relies heavily on supporting utilities, the conference will feature dedicated sessions on foundational agricultural infrastructure.
Delegates will analyse strategies to secure reliable, cost-effective power generation necessary to sustain farm operations and industrial processing plants.
Special attention will be given to the expansion of smart water management infrastructure and modern irrigation networks designed to mitigate persistent drought conditions.
Participants will also explore upgrades to road, rail, aviation, and warehousing networks aimed at streamlining logistics, lowering transit costs and curbing post-harvest losses. — Business Reporter, The Herald
Hippo Valley Estates recorded revenue of US$51.8 million for the first quarter ended June 30, 2026, remaining broadly in line with the same period last year despite a difficult start to the 2026/27 sugar season.
The sugar producer said cane deliveries declined by 25%, primarily due to disruptions caused by rains at the start of the crushing season, which reduced field accessibility and affected the planned harvesting programme.
In a trading update, Hippo Valley said sugar production fell by 21% from the prior year, reflecting the late start, periods of plant downtime, and reduced throughput.
“Despite the slow start, management remains confident that cane deliveries will recover without further disruptions. This confidence is supported by a robust cane supply system, capable of meeting peak harvesting demands and improved factory reliability,” Hippo Valley said.
Despite these setbacks, the company managed to maintain revenue, helped largely by firm demand in the domestic market. Local sales increased by 8% during the quarter and accounted for about 93% of total sales volumes.
Hippo Valley said its domestic performance was supported by commercial initiatives, customer engagement programmes and promotional activities. The Huletts SunSweet brand also continued to perform well.
The local market performance remains important to the company because domestic sales generally provide better returns than exports.
However, the business continues to face competition from imported, down-packed and counterfeit sugar, while weaker consumer spending in some parts of the retail market is also proving challenging.
The export market was less encouraging, with volumes falling below expectations. Hippo Valley attributed part of the decline to trade restrictions that affected sugar volumes previously destined for Kenya.
At the same time, the sugar producer is dealing with rising operating costs. Fuel, fertiliser, labour and cane procurement costs remain among the major pressures on the business, while disruptions to global supply chains and geopolitical tensions have added to uncertainty.
Management said it is responding by tightening expenditure, improving productivity and focusing on operational efficiency in an effort to contain costs and protect margins.
The company is also keeping a close watch on several risks, including supply-chain constraints, illegal water abstractions and the ongoing legal matter concerning the increase in the Division of Proceeds allocation.
On the water front, conditions are currently favourable. Dam levels were reported at between 95% and 100%, giving the company adequate irrigation water for at least the next two seasons.
However, weather remains a concern as the company prepares for the rest of the 2026/27 season. Hippo Valley said forecasts of El Niño-related conditions could bring below-average rainfall and higher temperatures, potentially affecting agricultural output.
The company said it will continue monitoring weather developments and take steps to protect its operations against possible disruptions.
On the outlook, Hippo Valley said its performance is expected to reach optimal capacity with all available cane for crushing converted into sugar, supported by reliable plant operations, improved operational efficiencies, and ongoing cost management initiatives.
“Although the crushing season commenced later than planned, the company remains focused on sustaining strong operational performance, building on the success of recent seasons,” the group said.
It added that it will continue to monitor market developments closely and implement appropriate sourcing and cost-control measures, including initiatives under Project Zambuko, to help mitigate these risks and maintain operational resilience.
Hippo Valley highlighted that it continues to monitor weather conditions closely given forecasts of El Niño-related weather patterns, which may result in below-average rainfall and higher temperatures.
The group said its longer-term focus remains on strengthening the resilience of its operations, improving productivity and maintaining sustainable returns while continuing to invest in environmental and community initiatives.
Grain producers have to date received a total of US$37 million and ZiG329 million in payments from the Grain Marketing Board (GMB), following the latest funding allocations from the Treasury.
The total comes as the GMB received an additional US$5 million from the Treasury on August 13, following a release of US$5 million and ZiG40 million the previous day.
GMB Chief Executive Officer Dr Edson Badarai said the total cumulative payout is expected to bolster financial capacity within the agricultural sector, enabling farmers to reinvest directly into their agribusiness operations.
“This funding by the government brings positive impact on the agricultural sector, as farmers will be able to invest in their agribusiness, a key sector driving Zimbabwe’s economy,” he said in an update.
He credited the Minister of Agriculture, Mechanisation and Water Resources Development, Dr Anxious Masuka, for securing the necessary Treasury allocations to maintain steady farmer payouts.
The state grain buyer reiterated its focus on delivering the total funds to ensure national grain self-sufficiency.
The government is stepping up preparations for the 2026/27 agricultural season, deploying measures to cushion farmers, livestock, and national food reserves against a potential El Niño-induced drought.
According to the 2026 Mid-Term Budget & Economic Review, a major focus will be on building up the Strategic Grain Reserve through increased purchases from local farmers.
The government also wants households and communities to keep their own grain stocks as an additional buffer against possible food shortages.
“Priority is being placed on strengthening the Strategic Grain Reserve through domestic grain purchases and mobilisation initiatives to ensure adequate national stocks ahead of the season,” the review says.
Storage facilities will be improved to ensure grain collected from farmers can be safely preserved and managed.
According to the plan, authorities will also continue buying grain from local production cycles to strengthen national reserves.
At farm level, the government is encouraging farmers to adopt practices that can help them cope with dry conditions. These include planting drought-tolerant crops, conservation agriculture, improving soil fertility and expanding irrigation.
The irrigation target for the coming season has been raised from 258,773 hectares to 299,328 hectares as part of efforts to reduce the sector’s reliance on rainfall.
Financing will also be central to the agricultural response. Government plans to combine public funding with private-sector financing, development support and agricultural insurance to ensure farmers have access to the resources they need.
“To support agricultural production, government will implement an integrated financing framework drawing on public resources, private sector participation and agricultural insurance mechanisms,” the review says.
Programmes such as Pfumvudza/Intwasa and the National Enhanced Agriculture Productivity Scheme will form part of the support package, alongside partnerships with agricultural institutions and other stakeholders.
Government is also looking at ways of reducing the financial risks associated with climate shocks. This includes taking out sovereign risk insurance and encouraging farmers and households to insure their crops.
Should local production be affected by poor rainfall, authorities will facilitate the importation of essential food commodities and agricultural inputs to help maintain adequate supplies.
Livestock farmers will also be supported through measures aimed at reducing drought-related losses.
These include monitoring water and grazing conditions, improving access to feed and fodder, strengthening disease surveillance and vaccination, and continuing the National Tick Control Programme.
Another key component of the plan is improving communication with farmers. Government intends to strengthen early warning systems and agricultural extension services while working closely with traditional leaders and other stakeholders to ensure farmers receive timely weather information and appropriate farming advice.
The 2026/27 Agricultural Production Plan is expected to cost about US$696.2 million. The funding will cover areas including Pfumvudza/Intwasa, cotton production, livestock and veterinary services, mechanisation, fisheries, pest control and agricultural monitoring.
The programme will draw funding from government, the private sector, development partners and public-private partnerships.
With the next farming season expected to present significant climate challenges, the Government’s approach is to prepare early, protect national grain stocks and give farmers more tools to maintain production even when rainfall is limited.
Gold deliveries to Fidelity Gold Refinery reached 26.05 tonnes during the first seven months of 2026, driven primarily by strong output from small-scale miners, latest data shows.
According to official figures from Fidelity through July 2026, small-scale producers delivered 18.40 tonnes, while primary large-scale producers delivered 7.64 tonnes.
Monthly deliveries to Fidelity totaled 4.65 tonnes in July 2026, reflecting a 3.3% decrease from June’s peak of 4.81 tonnes.
Small-scale miners delivered 3.46 tonnes to Fidelity in July, down from 3.58 tonnes in June, while primary producers delivered 1.19 tonnes, compared to 1.23 tonnes the previous month.
Quarterly performance data shows steady expansion in gold deliveries to Fidelity throughout the year. Deliveries totaled 9.31 tonnes in the first quarter before rising to 12.09 tonnes in the second quarter.
The performance comes as the country’s sole national gold refinery moves to plug operational leakages and safeguard the mineral value chain through a fresh anti-corruption partnership with the Zimbabwe Anti-Corruption Commission (ZACC).
To protect the rising delivery volumes and boost market confidence, members of Fidelity’s Integrity Committee, board members, and senior management recently signed formal Integrity Pledges during a two-day anti-corruption workshop in Harare with ZACC.
Fidelity General Manager Peter Magaramombe stated that the governance drive is aimed at eliminating value erosion across the supply chain.
“As the national gold refinery, Fidelity plays a critical role in the gold value chain. We understand that for Zimbabwe to fully benefit from its mineral resources, we must uphold the highest standards of integrity, transparency and accountability. Corruption has no place in the mining sector because it erodes value, discourages investment and robs the nation and its people of development,” he said.
Magaramombe said the workshop had come at a critical time as Fidelity deepens its systems to seal operational leakages and promote ethical conduct throughout the gold value chain.
The developments come as gold output is projected to increase to 55.6 tonnes in 2026, up from the initial projection of 50 tonnes, mainly due to sustained high international gold prices driven by safe-haven demand, as well as substantial investments by major gold producers.
The International Monetary Fund (IMF) has completed the first review of Zimbabwe’s 10-month Staff-Monitored Programme (SMP), recalibrating key fiscal anchors to lock in revenue overperformance and contain emerging fiscal risks.
Under the modified framework, the Bretton Woods institution introduced a new quarterly floor on central government deposits to accumulate a minimum US$275 million cash buffer against potential 2027 food-security shocks, alongside a US$300 million annual cap on gold-delivery incentives.
The completion of the review follows robust economic momentum in early 2026, building on a revised 8.3% real GDP expansion in 2025 driven by buoyant mining activity, record gold prices, and a statistical rebasing following the national economic census.
Despite external headwinds from Middle East trade disruptions and higher fuel prices, the IMF maintains Zimbabwe’s 2026 growth forecast at 5.0%, with annual inflation expected to close the year at 8.0% under continued monetary discipline.
To preserve macroeconomic stability, the IMF and Zimbabwean authorities agreed to strengthen program safeguards after fiscal spending overran in specific areas during the first quarter.
While Zimbabwe generated a primary cash surplus of US$371 million in the first quarter, surpassing targets due to strong value-added tax and customs collections, unbudgeted gold-delivery incentives for artisanal miners surged to US$118 million against an annual budget of US$16 million.
Furthermore, accelerated debt amortisation payments reached US$398 million, diverting funds from planned reserve accumulation.
“Sustained policy discipline, stronger fiscal risk management, protection of social spending, continued monetary and exchange rate reforms, and governance improvements will be important to entrench macroeconomic stability and advance Zimbabwe’s re-engagement efforts,” the IMF staff report stated.
To address the slippages, the central government’s projected 2026 revenue target was adjusted upward from US$9 billion to US$10.3 billion, with all excess collections earmarked for deposit buffers rather than expansionary spending.
The Ministry of Finance and Economic Development committed to assessing the long-term viability of the ad valorem gold-incentive scheme ahead of the 2027 budget.
Additionally, authorities agreed to consult IMF staff in advance on future liability-management operations and restrict domestic arrears clearance strictly to audited budget allocations.
On the monetary front, the Reserve Bank of Zimbabwe maintained tight liquidity management, keeping ZiG monetary base expansion below program ceilings.
The Bretton Woods institution welcomed the operationalisation of the new ZiG-denominated Term Deposit Facility as a step toward market-based monetary tools, while urging the central bank to phase out non-negotiable certificates of deposit and gradually eliminate its policy rate floor to support domestic interbank market development.
Program performance remained solid overall, with all five quantitative targets through end-March met.
However, the indicative target on protected social spending was breached by $84 million due to budget execution delays in critical programs, including the Basic Education Assistance Module.
Authorities are now taking corrective measures to expedite transfers to vulnerable households ahead of the second program review.
Zimbabwe’s total public debt stood at US$22.7 billion (38% of GDP) at end-2025, with external debt remaining in distress.
IMF staff emphasised that maintaining strong execution under the SMP is crucial for establishing the track record required to advance arrears clearance negotiations with official bilateral creditors and multilateral institutions.
