TSL is expanding its investments in industrial property and logistics infrastructure as it seeks to diversify earnings and reduce heavy reliance on agriculture, which currently accounts for nearly three-quarters of the group’s revenue.
The diversified group has steadily grown its property and logistics operations in recent years as part of a broader strategy to create more stable, recurring income streams that are less exposed to fluctuations in agricultural markets.
During the first half of the year, TSL completed a new 4 567-square-metre warehouse at its Hubert Fox Complex in Harare.
Construction is already underway on an additional 3 433-square-metre warehouse at the same site, with completion targeted for October.
The group’s property portfolio continued to perform strongly, with occupancy remaining high at 94 percent. Net property yields also improved to 12 percent from 10 percent following the disposal of lower-yielding assets.
TSL is also preparing to unlock one of its largest property developments, a 73-hectare land bank in Harare South that is expected to accommodate about 1 900 residential stands together with commercial facilities and supporting community infrastructure.
“Following the receipt of the necessary regulatory approvals during Q3 2026, development of the 73-hectare Harare South land bank is expected to commence in the fourth quarter of 2026,” chairman Anthony Mandiwanza said in a statement accompanying the group’s financial results for the six months ended April 30, 2026.
Alongside its property investments, TSL continues to strengthen its logistics business, with the commissioning of the Rutenga multimodal inland port identified as a major priority for the second half of the year.
The logistics division also invested in fleet renewal during the reporting period, acquiring 41 electric forklifts to improve operational efficiency and lower operating costs.
The investment contributed to a 17 percent increase in forklift utilisation. General cargo handling volumes rose 33 percent, while storage volumes increased 42 percent as demand strengthened from both existing and new customers.
Container handling activity also improved, with full-container lifts increasing 76 percent, supported by higher business from fast-moving consumer goods companies and small to medium-sized enterprises.
However, empty container movements declined during the period due to reduced container turnover and changes to shipping line routes.
Although tobacco volumes handled through Tobacco Sales Floor increased significantly, weaker prices affected returns.
Average contract tobacco prices fell 24 percent, while auction prices declined by about 42 percent, highlighting the sector’s continued exposure to commodity price volatility.
The group warned that forecasts of an El Niño-induced drought during the 2026/27 agricultural season, together with softer tobacco prices, could reduce farmer spending and affect demand in the coming year.
“The group will remain focused on executing its strategic priorities, improving operational efficiencies, efficient capital allocation and delivering sustainable returns to shareholders,” Mandiwanza said.