Stocks cheer stable and resurgent economy

Zimpapers Business Hub

THE improved performance of listed companies, as indicated by significant volume growth in 2025, highlight a stable and resurgent local economy, economic commentators have said.

Companies listed on both the Zimbabwe Stock Exchange (ZSE) and the Victoria Falls Stock Exchange (VFEX), which include Simbisa Brands, Dairiboard Holdings, CFI Holdings and Zimplow, reported growth in volumes, sales and revenue.

Simbisa Brands Limited reported a 9 percent growth in customer volumes, reaching 16,8 million, during the first quarter of the 2026 financial year.

In Zimbabwe specifically, customer volumes grew by 9 percent and delivery orders increased by 74 percent year-on-year.

Dairibord Holdings Limited experienced a 13 percent year-on-year increase in cumulative sales volume for the nine months ending 30 September 2025.

This was driven by a 22 percent increase in beverages volume and a 20 percent increase in foods volume, though liquid milks saw a decrease. CFI Holdings Limited’s Farmec saw tractor sales volumes increase by 89 percent and implement sales volumes rise by 9 percent over the first half of 2025.

Zimplow Holdings Limited’s Mealie Brand business unit also posted strong volume gains compared to the prior year.
The unit reported a 54 percent increase in revenue for the first half of 2025, buoyed by strong local implement volumes.

The company’s overall agricultural businesses recorded improved performance.
The strong sector recovery is fuelled by better-than-expected harvests and favourable commodity prices, particularly in the agriculture and mining sectors.

Dr Shynet Chivasa, an institutional business analyst at Lupane State University, said the significant volume growth reported by listed companies on the VFEX and ZSE generally signals positive momentum for the firms and has broader implications for Zimbabwe’s economy.

“Volume growth in these companies reflects increasing consumer demand, successful business strategies and strengthening economic conditions. For example, Simbisa Brands reported a 7 percent year-on-year revenue growth in FY2025, driven by volume increases and higher average customer spending,” she said.

“Similar volume gains for companies like Delta and Dairibord, which operate in essential consumer goods and manufacturing, point to rising consumption and improved market confidence.

“For the companies themselves, this volume growth typically translates to higher revenues, improved profitability and possibly stronger market valuations.”

Dr Chivasa said this may enable further investment in capacity expansion, innovation and market penetration, which in turn can create employment and improve shareholder returns.

Robust growth in leading listed companies, she added, signals broader economic recovery.
“Increased volumes in consumer-driven firms imply higher consumer spending power and demand, which can stimulate production, distribution and ancillary industries,” said Dr Chivasa.

“This signals stability in key macroeconomic variables such as inflation, exchange rates and interest rates. This can contribute to gross domestic product (GDP) growth, enhanced investor confidence in capital markets (VFEX and ZSE) and an improved economic outlook. It may attract more local and foreign investment, reinforcing positive economic cycles.”

Economist and National University of Science and Technology (Nust) lecturer Mr Stevenson Dlamini said substantial growth in operational volumes reported by bellwethercompanies such as Delta, Dairibord, Axia and Simbisa on the ZSE and VFEX carried significant implications across both the micro and macro dimensions.

“From an economic analyst perspective, this means for the companies (micro-level), the volume surge signifies successful market penetration, leading to enhanced economies of scale and improved capacity utilisation,” he said.

“Crucially, it translates directly into stronger cash flow generation, providing the necessary capital for retooling, future capex (capital expenditure) and local value chain investment, a vital sign of self-financing strength in the current operating environment.”

He said the current performance demonstrates recovering aggregate demand and consumer confidence, as well as a strengthening formal sector.

“In essence, it signals economic resilience and a deepening of productive activity. This trend is fundamental to understanding the current state of consumer spending and the effectiveness of policies aimed at stabilising the domestic formal economy,” he said.

Zimbabwe National Chamber of Commerce (ZNCC) Matabeleland chapter former vice- president and businessman Mr Louis Herbst said the recent trading updates from the major listed firms showed strong volume growth across beverages, food processing, retail and quick-service restaurants.

“From an analyst perspective, this surge in real demand is a clear indication that Zimbabwe’s economy is stabilising and gaining momentum. Volume growth cannot be engineered; it reflects rising disposable incomes, improved liquidity and growing consumer confidence,” he said.

“For investors, these results send a decisive message: Zimbabwe is stable, it is progressing and it is open for business. The reforms implemented under President Mnangagwa’s leadership and his Government, combined with improved growth projections from the World Bank and IMF (International Monetary Fund), are now visibly translating into corporate performance.”

Mr Herbst said this alignment between policy, economic indicators and private sector output strengthens Zimbabwe’s position as a serious, investable frontier market.

The opportunity before investors, he said, is broad and multi-sectoral, from manufacturing and retail to agricultural value chains, tourism, mining services and logistics.

“At the same time, rising volumes by leading companies point to future expansion, which in turn means more jobs, stronger supply chains and increased regional competitiveness,” said Mr Herbst.

“Simply put, the data now supports the sentiment: Zimbabwe’s economic trajectory is upward and the window for strategic investment has never been wider.”

Economic analyst Mr Reginald Shoko said the marked volume and price growth for listed companies like Delta and Simbisa Brands indicated robust positive momentum.

“For these companies, this upsurge enhances access to capital for expansion, increases investor appeal, particularly on the US dollar-based VFEX with its tax incentives, and demonstrates operational resilience,” he said.

“For the broader Zimbabwean economy, it reflects significant capital market development, with the VFEX’s market cap reaching a record US$1,85 billion and the ZSE reporting a substantial profit increase.”

Mr Shoko said this growth facilitated the attraction of foreign investment and signalled sectoral diversification.
He said key challenges persisted as risks include high market concentration in a few large stocks, cautious foreign investors who may quickly realise profits and a dependence on continued macroeconomic stability and consistent Government policy for long-term sustainability.