ONE of Zimbabwe’s biggest construction firms said it is negotiating payment plans with key clients as tightening liquidity on the domestic market weighs on project execution and cashflows.
In its annual report for the year-ended December 31, 2025, the Zimbabwe Stock Exchange-listed Masimba Holdings Limited warned warned constrained funding conditions could slow delivery timelines, as restrictive monetary policy continues to drain liquidity in a bid to stabilise the exchange rate.
“Liquidity needs of the group have been assessed on a 12-month rolling cashflow forecast and net cash requirements are compared to available borrowing facilities in order to determine headroom or any shortfalls,” Masimba said in a statement attached to the report.
“This analysis shows that available borrowing facilities are expected to be sufficient over the lookout periods, which is typically 12 months from the date of authorisation of these financial statements.”
To ease pressure from delayed payments, the company said it has stepped up engagements with clients.
“To mitigate against risk of delays in payment, the group has been engaging key clients to negotiate for payment plans. Commitment to settling the receivable balances has been observed by clients’ adherence to payment plans,” Masimba added.
The move comes as Masimba’s order book stands at US$278 million, underpinned by new contracts across mining, construction, housing development and roads.
Chairman Gregory Sebborn said the pipeline strengthens revenue visibility, but flagged funding constraints as a key risk.
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“We are pleased to report the addition of significant new orders across the mining, building, housing development, and road sectors, reinforcing our market leadership and enhancing future revenue visibility,” he said.
“While we commend the government’s ongoing commitment to infrastructure investments, we recognise that project execution timelines may be affected by limited funding and liquidity in the domestic financial market.”
Despite the headwinds, Sebborn said the group remains resilient and is shifting its focus.
“We are actively diversifying into private sector projects to manage concentration and credit risks effectively, ensuring a balanced and sustainable growth trajectory,” he said.
Masimba’s financial position remained firm during the period under review. Non-current assets rose 4% to US$31,2 million, driven by US$4,2 million in capital expenditure on plant and equipment, including the acquisition of an asphalt manufacturing plant.
“These investments were primarily funded by medium-term borrowings from local banks, resulting in total borrowings rising by 30% to close at US$4,1 million,” Sebborn said.
Current assets increased by 5% to US$65,5 million, while current liabilities declined by 9% to US$46,3 million, lifting net working capital by 20% to US$19,2 million. Total assets closed the year at US$96,7 million, with liabilities at US$60,3 million — up 5% and 8%, respectively, from 2024.
“The group therefore closed the year with a net asset position of US$36,4 million, a notable growth of 19%,” Sebborn said.
Masimba ended the period with US$1,42 in current assets for every dollar of short-term debt, indicating adequate cover for near-term obligations.
