Ivan Zhakata
Herald Correspondent
THE Forestry Commission posted a liquidity position of ZWG25,7 million in 2025, enabling it to clear eight months of outstanding salary arrears and restore predictable monthly payments, despite recording a comprehensive deficit of ZWG73,2 million.
The commission’s 2025 Annual Report showed that cash and cash equivalents increased by 306,7 percent during the year ended December 31, 2025, while net cash generated from operating activities more than doubled to ZWG25,9 million from ZWG11,8 million in 2024.
Presenting the financial statements, acting director of finance and administration Mr Trust Chiriga described the period as a year of operational turnaround and attributed the deficit largely to non-cash accounting adjustments.
“The commission, however, moved from a comprehensive surplus of ZWG19,1 million in 2024 to a comprehensive deficit of ZWG73,2 million in 2025, largely as a result of fair value adjustment losses on investment property that was initially recognised in the commission’s books during the period under review,” he said.
Mr Chiriga said the improved cash position has enabled the commission to settle outstanding salary and allowance arrears, which had accumulated to approximately eight months and introduce a fixed salary payment date of the 25th of every month.
“The resolution of salary and allowance arrears, together with the restoration of predictable salary payments, has contributed significantly to improved employee morale and confidence in the organisation,” he said.
The commission’s improved liquidity was, however, accompanied by rising operational costs, with expenditure increasing by 54,5 percent against revenue growth of 4,9 percent.
Administrative expenses surged by 73,2 percent, while employment costs rose by 33,6 percent, resulting in the operating margin declining from a positive 8,2 percent in 2024 to a negative 35,2 percent in 2025.
The report also showed that total assets declined by 3,9 percent to ZWG495,2 million, largely due to an 18,1 percent reduction in the carrying value of investment property.
Current liabilities increased by 87,1 percent to ZWG114,1 million, narrowing the current ratio to 1,01:1 from 1,37:1 in the previous year.
Despite the financial pressures, Mr Chiriga expressed confidence in the Commission’s ability to consolidate the progress made during the year and strengthen its financial sustainability.
“The commission is well positioned to consolidate the gains made during 2025 and build a stronger, more resilient and financially sustainable institution,” he said.
He said the Commission will focus on strengthening provincial financial self-sufficiency, enforcing contracts to secure predictable revenue streams, diversifying income sources and maintaining a strong culture of cost consciousness.
The measures are aimed at improving revenue generation, containing expenditure and strengthening the commission’s financial position.
