Online Reporter
Business Reporter
NAMPAK Zimbabwe expects heightened geopolitical tensions and the recent unrest in South Africa to maintain pressure on operating costs despite an anticipated recovery in tobacco packaging and plastics volumes.
Group managing director and executive director Mr John van Gend said tensions in the Gulf region and the Russia-Ukraine conflict were likely to continue driving volatility in fuel and raw material prices, while anti-immigrant demonstrations in South Africa could weigh on regional economic activity.
Nampak, however, noted that the operating environment remained relatively stable during the quarter, supported by stable ZiG and subdued inflation.
The packaging firm said that tight management of ZiG liquidity continued to shift a greater proportion of transactions towards the United States dollar.
“The recent anti-immigrant demonstrations in South Africa may negatively affect regional economic activity through increased repatriation of foreign nationals and disruption to diaspora remittance flows,” Mr van Gend said in the company’s trading update for the third quarter to June 30, 2026.
He said unreliable electricity supplies, particularly in Ruwa, also increased the company’s reliance on generators, adding to production costs.
Rising fuel and raw material prices further squeezed margins across the group.
In terms of performance Nampaks group revenue for the nine months to June 30, 2026 rose 9 percent to US$67,8 million, while volumes increased 16 percent compared with the prior year.
Nampak is a leading packaging manufacturer in Zimbabwe, listed on the Zimbabwe Stock Exchange. It operates through major subsidiaries producing paper, plastic and metal packaging for diverse sectors like agriculture, beverages and tobacco.
