Online Reporter
Michael Tome
Business Reporter
AFC Leasing Company says it has embarked on a comprehensive turnaround strategy aimed at restoring profitability and strengthening operational capacity, as the firm positions itself to deepen its role in Zimbabwe’s agricultural mechanisation drive.
A subsidiary of the Mutapa Investment Fund-owned AFC Holdings Group, the company said the strategy is anchored on improving liquidity, enhancing operational efficiency and unlocking value from its asset base, while expanding its product offering and partnerships.
Central to the recovery plan is a US$3 million shareholder-backed facility, of which approximately US$1,43 million has already been drawn down.
The funding is being deployed towards mechanisation projects and working capital support — a move that is expected to improve equipment availability and service delivery to farmers.
In a bid to diversify revenue streams, AFC Leasing Company has also introduced new service lines such as haulage, equipment servicing and reforestation ripping, broadening its footprint beyond traditional leasing operations.
The firm is further taking advantage of its strategic alliances with government-linked entities, including the Agricultural and Rural Development Authority (ARDA), CBZ Agroyield and Allied Timbers.
These partnerships are expected to expand AFC Leasing’s customer base and extend its service reach across key agricultural and forestry value chains.
In his statement on the financials for 2025, AFC Holdings Limited Group chief executive officer, Mr Francis Macheka, reaffirmed the commitment to supporting farmers to boost productivity and national food security.
“Management is implementing a comprehensive turnaround strategy focused on restoring profitability and improving the operational capacity of the entity. As such, the company has introduced new products such as haulage, equipment servicing and reforestation ripping.
“We remain committed to supporting farmers and agribusinesses, ensuring mechanisation services contribute to higher yields, improved productivity and enhanced food security,” said Mr Macheka.
He also indicated that AFC Leasing is accelerating its land monetisation programme, targeting peri-urban land with an estimated market value of ZiG65 million.
The land is being prepared for development under structured financing arrangements designed to unlock liquidity and strengthen the company’s capital position.
According to AFC Holdings, a number of operational reforms are underway, including a review of internal business processes to streamline operations and improve responsiveness.
The firm indicated that it will prioritise operational discipline, market diversification and technological integration to enhance service delivery and long-term sustainability into the future.
The turnaround initiative comes as AFC Leasing recorded a comprehensive income of ZiG143.7 million during the period under review.
However, the business posted an operating loss of ZiG24,05 million, attributable to liquidity constraints experienced at the onset of the summer cropping season, which disrupted the timely deployment of machinery.
This resulted in low equipment utilisation levels, elevated maintenance costs and rising asset insurance expenses.
Despite these challenges, total assets grew by 34 percent to ZiG679,4 million as at 31 December 2025, largely driven by the revaluation of property and equipment.
AFC Leasing Company indicated that it is optimistic that the ongoing reforms, improved funding position and strategic partnerships will place the company on a firm footing, enabling it to return to profitability while playing a pivotal role in Zimbabwe’s agricultural transformation.
