Zimbabwean consumer sector poised for improvement amid rising costs, tax pressures

AN UPLIFT in volumes has been projected for Zimbabwean consumer companies despite rising cost structures, a volatile policy and monetary environment as well as higher taxation, say analysts at IH Securities.

- TAWANDA KAROMBO

Hippo Valley, Tongaat Hulett's Zimbabwe-listed unit, reported a 44% downturn in revenues to $191.59 million this month although the gross profit for the year to end March rose 2% to $66.87m.

Another Zimbabwean consumer company, Star Africa Corporation that also trades in sugar, however, raised revenues by 22% over the same period.

Nonetheless, analysts at IH Securities on Friday said in the securities and advisory firm's latest research note on Zimbabwe's consumer sector that they "anticipate an uplift to volumes for consumer-facing companies this year owing to a likely recovery" in consumer spend.

However, this was against the backdrop of "general cost structures continuing to be on the rise" corresponding to a "volatile policy environment and the crystallization of costs" in United States dollars.