Masimba repositions as currency risks mount in Zimbabwe

Masimba Holdings Limited is reshaping its business strategy to cushion against growing currency and liquidity risks, as Zimbabwe moves toward strengthening the Zimbabwe Gold (ZWG) currency and a potential mono-currency system by 2030.

Chairman Gregory Sebborn said recent government measures—particularly settling contractor payments in local currency—signal a major shift in the operating environment, raising concerns around liquidity and exchange rate exposure.

In response, Masimba is diversifying its project portfolio across sectors such as mining, housing, and road construction, while increasing its focus on private sector clients to reduce reliance on government-funded projects.

Sebborn said the company is prioritising operational efficiency and risk management to remain competitive amid evolving economic conditions. He noted that spreading exposure across multiple sectors helps mitigate concentration and currency risks.

Despite macroeconomic challenges, Masimba's contracting business remains strong, supported by an order book valued at US$278 million and new contracts across key sectors.

However, the company warned that liquidity constraints in Zimbabwe's financial system could delay project execution, even as government infrastructure spending continues.

To counter this, Masimba is strategically pivoting toward private sector partnerships as a hedge against delayed payments and funding bottlenecks associated with public projects.

Financially, the group posted steady growth in 2025, with revenue rising 9.6% to US$61.5 million. Earnings and profitability also showed modest gains, reflecting resilience despite rising costs and economic uncertainty.

Masimba's strategic shift highlights the broader adjustments underway among Zimbabwean corporates as they navigate tighter monetary conditions and reduced access to foreign currency, with effective risk management becoming critical for long-term sustainability.