Chronicle Editor
Business Online Reporter
MASIMBA Holdings Limited, says it has a strong and firm order book with tenures of between six to 18 months but warned that the prevailing volatility in the current macro environment might negatively affect implementation.
The firm has implored authorities to urgently implement corrective measures to restore economic stability in the market.
The company, in a trading update for the quarter to March 31, 2023, said revenue volumes were ahead of the comparable period by 18 percent, driven by a strong and firm order book.
“Profitability in the period remained stable owing to cost containment strategies being implemented by the group,” it noted.
“The group has a firm order book with tenures of between six to 18 months. The order book is spread over the roads and earthworks, mining and energy sectors.
“However, execution of the order book may be negatively impacted by the prevailing volatility in the current macro environment.”
The firm said the macro-economic environment is forecast to remain constrained on the back of a contractionary fiscal policy and continued pricing distortions emanating from exchange rate disparities in the market.
However, the Government has already introduced a cocktail of stabilisation measures to address the resurgence of macroeconomic instability.
In addition to gold coins introduced last July, the authorities have since injected gold-backed digital tokens in foreign currency, which mopped up $14 billion at the initial sale held last week.
The total milligrams of gold purchased were 139 570 982, equivalent to 139,57 kg of gold.
The central bank said pricing of the gold-backed digital tokens in foreign currency shall remain the same as the pricing model of the physical gold coins whilst payment for the gold-backed digital tokens or physical gold coins in Zimbabwe dollar shall remain at the current 20 percent margin above the interbank mid-rate.
Government has said through the Reserve Bank Of Zimbabwe (RBZ), it shall continue to assure public confidence by ensuring that at all times, gold coins and gold-backed digital tokens remain fully backed by physical gold reserves.
Online Reporter