Masimba Holdings has raised concern over government’s decision to settle contractor payments exclusively in ZiG, warning that the policy could create cash-flow pressures and complicate project planning as many costs remain denominated in US dollars.
The construction group, deriving a significant portion of its business from public infrastructure projects, said the move introduces uncertainty at a time when contractors are grappling with rising operating costs.
Government recently announced that payments to contractors and suppliers would be made solely in ZiG as part of broader efforts to strengthen demand for the local currency and advance de-dollarisation.
In a latest trading update for the quarter ended 31 March 2026, company secretary Pearl Mutiti said the policy remains a major concern for the business.
“The government’s announcement to pay contractors in ZiG remains a source of uncertainty and significant risk to cash-flow and project planning,” Mutiti said.
She added that tight monetary policy and limited circulation of ZiG continued to constrain liquidity within the economy.
“In response, the group remained proactive in managing its working capital position to sustain its operations and financial stability,” Mutiti said.
Despite these concerns, Masimba reported a positive first-quarter performance against a backdrop of improving macroeconomic stability.
The company noted that annual inflation rates continued to decline during the period, with US dollar inflation closing at 1,3 percent and ZiG inflation at 4,4 percent, compared to 12,4 percent and 15 percent, respectively, at the end of 2025.
The ZiG exchange rate also remained relatively stable throughout the quarter, appreciating marginally by 2,5 percent and reflecting the impact of the authorities’ tight monetary policy measures.
Revenue for the quarter increased 13 percent to US$8,8 million compared to the same period last year, while profit after tax rose 12 percent to US$453 000.
“This performance was achieved despite above-normal rainfall and a prolonged rainy season compared to prior comparable periods, which created challenging operating and construction conditions across several projects,” Mutiti said.
She said the group’s project teams successfully adapted to the difficult conditions through effective planning and execution, enabling work to continue across key contracts.
Masimba said its order book remains strong, supported by a balanced mix of public and private sector projects. The company has been gradually increasing its exposure to private sector work as part of efforts to diversify revenue streams and reduce reliance on government-funded contracts.
Management said the healthy pipeline of projects provides confidence in the group’s future growth prospects.
The company’s liquidity position remained stable during the quarter, with a current ratio of 1,42 and a quick ratio of 1,26.
Masimba also invested US$2 million in capital expenditure during the reporting period, mainly on hauling and trenching equipment aimed at improving operational capacity and project execution efficiency.