Online Reporter
Nokuthaba Brita Ncube
Zimpapers Business Hub
Zimbabwe Stock Exchange-listed piping products manufacturer, Proplastics Limited, says it anticipates a strong increase in demand for piping following the end of the rainy season.
The firm, in its trading update for the first quarter of 2025, noted that the factory remains well-equipped to process and fulfil all orders promptly to meet the needs of the customers.
“As the rainy season comes to an end, we anticipate a strong increase in demand for piping, with major projects across all sectors set to commence,” said the firm.
During the period under review, the firm reported that quarterly sales volumes grew by 11 percent over the prior period despite the prevailing liquidity issues.
“Revenue grew by 3 percent to US$4,263 million (ZiG 114,078 million) against US$4,123 million (ZiG 110,331 million) achieved in the prior period without any export contribution recorded in the current quarter.”
Production volumes also increased by 11 percent against the previous period, as the business cleared supply backlogs and replenished stocks for high-demand products, with the raw material supply remaining consistent throughout the quarter.
The firm, however, highlighted that despite a promising start to the quarter, where the business traded profitably, the environment remains constrained by liquidity issues, low economic activity, and increasing power disruptions.
“The tight monetary policy measures currently in place have resulted in the scarcity of the local currency, with the resulting slowing in Government projects,” said the firm.
Moreover, whilst the exchange rate and inflation have been brought under control, the availability of ZiG remains limited, thereby negatively impacting potential revenue streams.
The company further stated that the increase in the foreign currency surrender requirement from 25 to 30 percent for exports has not only eroded the competitiveness of their exports but has also negatively impacted overall market positioning and exporting viability.
According to Proplastics, the formal market, particularly the retail sector, made appeals for a reduction in the cost of doing business and the removal of informal sector advantages during the period under review.
“The proposals will potentially reduce smuggled products, which are disrupting value chains and forcing manufacturers to adapt to the presence of such products”.
Looking ahead, the firm lamented that export revenue is expected in the second quarter, with a growing volume of export enquiries being received.
Meanwhile, favourable rainfall has significantly improved water levels at Kariba, which will enhance electricity generation and improve operational efficiencies.
The manufacturing concern, whose installed capacity is 12 000 tonnes annually, produces products that include PVC pipes, sewer pipes, electrical conduits, borehole casings, soil waste and vent, minetuff pipes, and polythene pipes, among others.
At present, Proplastics is producing 7 000 tonnes per annum and supplies the local market as well as the export market, which includes Sierra Leone, Mozambique, Tanzania, Malawi, the Democratic Republic of Congo and Zambia
In the last three years, Proplastics invested US$12 million in constructing a new factory in Harare, and the massive infrastructural development projects by the Government across the countryhave bolstered the firm’s operations.
