Online Reporter
Michael Tome
Business Reporter
STARAFRICA Corporation expects a stable operating environment to 2026, anchored by tight monetary policy, fiscal discipline, a positive agricultural outlook and firm mineral prices.
In its trading update for the half-year to September 2025, Starafrica’s management believes the stable operating environment will support a gradual recovery in consumer demand.
The diversified group said macroeconomic stability remained a key positive factor, with agriculture and mining expected to provide demand anchors for the broader economy.
Despite the favourable outlook, the group highlighted that its sales volumes at the sugar refining business declined by 26 percent to 27208 tonnes from 36 625 tonnes in the prior comparative period.
Demand-driven production declined to 28 686 tonnes from 36 818 tonnes previously, attributed to weaker business-to-business (B2B) demand, as key industrial customers reduced sugar usage in response to the sugar tax, opting instead for non-nutritive sweeteners to manage costs.
“We anticipate a stable operating environment, as supported by a tight monetary policy and fiscal discipline. A positive agricultural outlook and strong mineral prices are expected to act as anchors for a recovery in consumer demand.
“Nonetheless, the lack of progress in addressing key value chain issues on the sugar tax and VAT classification continues to impact margins negatively.
“The group will continue to engage the Government through the Zimbabwe Sugar Association on these important policy matters, as they have an impact on the Zimbabwe Sugarcane Industry Development Strategy to double output in the next 10 years,” said Starafrica chairman Dr Rungano Mbire in the statement accompanying the half-year financials.
In the period under review, Starafrica’s Goldstar Sugars (GSS) operation adopted a deliberate pricing strategy to secure a sustainable competitive position against imports.
