Civil Aviation Authority of Zimbabwe battles financial turmoil

The Civil Aviation Authority of Zimbabwe (CAAZ) is facing mounting financial pressure after the Auditor-General warned that its growing debt, liquidity challenges and continued operating losses cast significant doubt over its ability to continue as a going concern.

In the audit report for the financial year ended December 31, 2024, the Auditor-General issued an unmodified audit opinion on CAAZ's financial statements but highlighted a material uncertainty regarding the authority's financial sustainability.

According to the report, CAAZ failed to service overdue legacy loans amounting to ZWG1.31 billion, equivalent to approximately US$1.68 million, during the year under review.

The audit also found that the authority's current liabilities exceeded its current assets by ZWG1.18 billion as at December 31, 2024, while it recorded an annual deficit of ZWG94 million.

"These conditions indicate the existence of a material uncertainty that may cast significant doubt on the Authority's ability to continue as a going concern," the Auditor-General said.

Despite raising concerns over the authority's financial position, the Auditor-General concluded that the financial statements fairly presented CAAZ's financial position, financial performance and cash flows in accordance with the International Public Sector Accounting Standards and therefore issued an unmodified audit opinion.

CAAZ is responsible for regulating Zimbabwe's civil aviation sector, providing air navigation services, managing airports and overseeing aviation safety across the country.

Efforts to obtain a comment from CAAZ management on the Auditor-General's findings were underway at the time of publication.