Chronicle Editor
Michael Makuza, Business Reporter
ZIMBABWE Stock Exchange-listed company, National Tyre Services (NTS), expects an improvement in energy generation and anticipated higher agricultural output to steer economic growth this year.
While revenue generation was negatively affected by power outages that disrupted the company’s retreading factories and retail operations in the period to December 2022, the company has expressed optimism about future prospects.
It noted, in particular, that the economy could derive leverage from anticipated improvements in the energy and agriculture sectors.
“We are optimistic that the economy will recover, backed by an improvement in energy and agricultural production growth given the current strong rainy season,” NTS secretary, Mr Stewart Mandimika, said in a latest trading update.
The agriculture sector is the mainstay of the country’s economy as it employs a majority of people, especially in rural areas.
The country recorded a bumper wheat harvest in the last winter wheat season, the first time in many years, and expects to reap big again this summer cropping season – riding on improved Government and private sector support to farmers.
Zimbabwe expects to boost its power output by 600 megawatts when the Hwange Power Station units 7 and 8 expansion comes on board starting this quarter. The improved water inflows into Lake Kariba are also set to beef up Kariba South Hydro-Power generation capacity and help the country in cutting imports.
The increase in economic activity under the Second Republic has increased the demand for power for industrial operations across all sectors of the economy mainly mining, agriculture, manufacturing, and infrastructural development.
To ensure sustainability, Government has also invited private players and is facilitating their involvement in rolling out renewable energy projects in the country to spur economic activity whose increasing demand outstrips power generation capacity.
Among the projects to address energy challenges, the Government is steering projects such as Batoka, large solar parks, and wind projects, which are tipped to have a massive improvement in the energy sector.
Meanwhile, NTS said during the year under review, tyre services grew by five percent compared to the same period last year with good workmanship attributed to improving demand for tyre services across all their branches.
New tyre sales volumes dropped by one percent in the third quarter of 2022 compared to the third quarter of 2021 due to the negative impact of power outages on the company’s retail operations, which also affected the cumulative performance, said the company.
Online Reporter