ZIMBABWE’S top clay brick manufacturer and distributor, Willdale Limited, has set its sights on a strong bounceback after facing serious headwinds during the 2024 financial year.
One of the major projects earmarked for 2025 at Willdale is the US$3,5 million all-weather brick-making plant that will see the company producing all-year round.
The Zimbabwe Stock Exchange-listed company recently announced a major shake-up to its board with Brian Mataruka taking over as chairperson with effect from April 1 this year.
In its 2024 annual report, Willdale revealed that the operating environment was affected by liquidity challenges, moderate inflation and high levels of competition.
It further indicated that the introduction of the ZiG in April last year brought some stability to inflation although the local currency was devalued in October last year.
Willdale further indicated that the operating environment is expected to remain tight in 2025 with liquidity remaining constrained while competition will continue to stiffen as existing competitors and new players jostle for available projects.
It is also expecting that the boom in the construction industry will persist with its strong brand and consistent focus on quality products giving it a competitive edge.
In an interview with NewsDay, Mataruka said while the company was encountering strong competition from other players, including Chinese-owned brick-manufacturing companies, it was geared to face the adversity.
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“Competition happens in business all the time. But as a builder, we believe that we are best-placed to drive the construction sector forward in line with government's objective of infrastructure development,” he said.
“We are in the process of streamlining our operations to introduce operational efficiencies, cut costs and ensure that we are able to remain afloat.”
Mataruka applauded government’s efforts at stabilising the exchange rate since their biggest clients are parastatals.
“Our biggest customer for face bricks is those State-related institutions. So when you are being paid in ZIG and there is a big exchange gap between the ZIG and the dollar, you are already in a difficult position. You are making a loss before you even trade,” he said.
“So the current efforts by the Reserve Bank of Zimbabwe governor [John Mushayavanhu] to introduce exchange rate stability are appreciated by companies of our size. Because now we are able to happily accept ZIG and any currency from our clients, but particularly ZIG, because we are able to use that money with a good commercial value in terms of exchange rate. So there is very little exchange, minimal exchange rate losses that come, which is a good thing for us.”
He said the Willdale board would support government’s infrastructural development agenda by “ensuring that we have high-quality, high-value bricks that are available throughout the year.”
He said to achieve that, Willdale was in the process of acquiring an all-weather plant worth US$3,5 million.
“The production of bricks in Zimbabwe has traditionally been seasonal. When it rains, most brick manufacturers stop production because our bricks dry in the sun.
“But with the introduction of an all-weather plant, which is the plant that most Chinese manufacturers are bringing in, you can produce bricks throughout the year.
“And by doing so, you are now ensuring that you can service your clientele throughout the year. We are at an advanced stage of securing funding.”
Mataruka also revealed that Willdale will take advantage of its huge land bank, adding that had engaged land developers to convert it to commercial use.
He said Willdale would focus on operational sustainability.
“One of our biggest energy contributors in our business is coal. Coal is a fossil fuel and as much as we use it, we also need to ensure that we use it in a way that is sustainable and in a way that we ensure that we are also able to reclaim what we put out through carbon emission to find a way to create a carbon balance,” Mataruka said environment, social and governance (ESG) would be a big part of his board's focus.
“So, you know, investment in a new plant, investment in commercial and residential infrastructure for the new city and a keen focus on ESG and sustainability.”
He said they were engaging Treasury on the value-added tax issue especially on the commercialisation of its land banks.
