Online Reporter
Nqobile Bhebhe
Zimpapers Business Hub
Star Africa Corporation, the sugar refining and food processing group, has expressed optimism over the country’s improving economic climate.
It cites macroeconomic stability and a favourable agricultural season as key factors expected to boost national food security and economic activity.
The group stated it remains resolutely focused on enhancing its value proposition to customers, despite industry headwinds such as the sugar tax and regional competition.
“We are encouraged by the macroeconomic stability that emerged in the latter half of the year,” the group said in its financial for the year ended March 31, 2025.
“This, combined with a favourable agricultural season, is expected to improve national food security and stimulate economic activity.”
The group noted that a projected record tobacco harvest and rising international gold prices are likely to boost foreign exchange inflows and underpin currency stability.
“While the ‘sugar tax’ remains a headwind, we will continue to advocate, through the Zimbabwe Sugar Association, for policy refinements that support the local industry.
“We are also hopeful that the recent inclusion of white sugar on the list of products attracting a 30 percent surtax will provide necessary protection against the dumping of sugar by regional producers,” the company added.
The company reported a strong financial performance for the year, with group revenue rising by 22 percent to ZiG1,7 million, up from ZiG1,4 million in the prior year.
“This growth was primarily driven by increased sales volumes at our Goldstar Sugars and Country Choice Foods divisions,” said the group.
Gross profit came in at ZiG339,7 million, achieved despite strategic price reductions aimed at stimulating market demand.
“This demonstrates the tangible benefits of our ongoing cost-optimisation initiatives and value chain collaboration,” the group said.
As a result, the Group significantly narrowed its operating loss to ZiG79,8 million, down from ZiG501,5 million in the previous period.
The year concluded with a loss after tax of ZiG129,4 million, reflecting a marked improvement in operational efficiency and financial discipline.
Goldstar Sugars (GSS), the company’s flagship sugar refining operation, recorded a seven percent growth in sales volumes, with granulated white sugar sales reaching 59 613 tonnes.
“This performance is particularly encouraging given the subdued trading environment in the latter half of the year,” said Star Africa.
The group noted that while it reduced prices to remain competitive against imports, it expects to realise the full benefit in the upcoming year.
“Demand for industrial sugar in general is weak as some of our key customers in the beverage sector suffered from the negative effects of the Added Sugar on Beverages Tax ‘sugar tax’,” the group added.
Throughout the reporting period, GSS maintained a stable supply of raw materials and strategically managed production in line with demand to optimise working capital.
“We are confident in our capacity to scale up production to meet anticipated future market demand,” said the company.
Meanwhile, Country Choice Foods (CCF), Star Africa’s specialty products division, posted a 14 percent growth in sales volumes, rising from 1 244 tonnes to 1 416 tonnes.
“This success was driven by strategic adjustments to our market approach and enhanced value offerings,” the group said.
Star Africa indicated it is actively implementing process refinements to fend off competition from imported products, while continuously diversifying its product portfolio.
Looking ahead, Star Africa remains upbeat about the economic prospects and is committed to leveraging market opportunities.
“We believe the prevailing macroeconomic stability, improved agricultural output, and targeted protection measures will enhance the competitiveness of local industry,” the group said.
With a firm grip on its growth strategy and a renewed focus on customer value, Star Africa is positioning itself as a key player in Zimbabwe’s industrial revival.
