ZIMBABWE remains attractive for investment due to positive gross domestic product (GDP), a steady increase in foreign direct investment (FDI) and low inflation, a leading international firm has said.
Report by Mernat Mafirakurewa
In its interim report for the six months to February 29, Cambria Africa plc chief executive officer Edzo Wisman said 2013 was a time for exploring regional opportunities to capitalise on the success built in Zimbabwe.
Cambria Africa plc is a long- term, active investment company, building a portfolio of investments primarily in Zimbabwe.
“During the period under review, Zimbabwe experienced bursts of liquidity shortages, resulting in cautious consumer spending which directly contracted growth within our portfolio,” Wisman said.
“Following the credible electoral process witnessed in the recent constitutional referendum, Zimbabwe is moving towards harmonised presidential and parliamentary elections later this year.
“The country remains attractive in terms of strong fundamentals, positive GDP growth, a steady increase in foreign direct investment inflows and low inflation levels (2,91% in 2012) compared with neighbouring countries.
“Following the agreement of a new constitution, investor interest in Zimbabwe continues to strengthen, as evidenced by the Zimbabwe High-Level Investment Conference in Johannesburg this month.”
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
The country has witnessed a steady increase in investment inflows from $60 million in 2009, to $166 million in 2010 and $387 million last year.
Zimbabwe was one of the top economic performers on the continent with average annual growth of 7% in the period 2008-2012.
Irrespective of country, Cambria said election years always brought uncertainty in the run-up to the anticipated polls, as consumers hesitate and investors wait and Zimbabwe was no different.
Cambria said during the first six months of the year, occupancies at Leopard Rock Hotel dropped to 54% (2012: 64 %), a decrease of 16%.
Average room rates decreased by 23% to $87 (2012: $ 113). RevPar for the period was $47, when compared to $72 for the same period last year.
“The hotel continues to operate at a loss and Cambria has repeatedly expressed its dissatisfaction about the performance of the hotel to Lonrho Hotels. If the operating issues do not improve over the coming periods, Cambria will review further strategic and operating alternatives, which may lift performance of its investment in Leopard Rock Hotel,” Wisman said.
On Celsys, Cambria said significant further investment into Celsys would be required to bring the company to a sustainably profitable multi-line print concern.
Transactions processed through Celsys’ Legacy ATM division continue to grow with revenues amounting to $968 000.
“With Celsys’ core business being printing, Cambria does not intend any further investment in the ATM division,” he said.
During the period under review, Cambria’s losses went down 88% to $1,8 million.
