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(NEWZIMBABWE) LonZim upbeat over economic recovery

LonZim upbeat over economic recovery
by Gilbert Nyambabvu
11/05/2010 00:00:00

ZIMBABWE-focused investment group, LonZim says it is fairly upbeat about the country’s economic recovery but urges authorities to address existing challenges such as liquidity constraints in order to consolidate the turn-around.

LonZim - whose interests in the country include the Zimbabwe Stock Exchange-listed Celsys Limited, the Leopard Rock Hotel in the eastern highlands as well as a new airline Fly540 - said group turnover had so far increased to $4 million from about $700000 in the comparative period last year.

“Gradually the economy can be seen to be making progress. The business environment has rationalised with dollarisation and the demise of hyperinflation. Companies are once again able to understand their business models, plan for the future and forecast with some accuracy what their objectives and targets are.

“The size of the economy remains very depressed. However, it is growing on a month-by-month basis, encouraged by continuing investment into rebuilding Zimbabwe from the international, public and, increasingly, the private sector,” Chief Executive Geoffrey White said in a statement accompanying the results.

The company said its seven core divisions in the country are now well placed to take advantage of the economic recovery adding significant investment s had also been made in new plant and machinery in the last year as it became clear that the new coalition administration would implement business-friendly policies.

“Where many Zimbabwean businesses are struggling with liquidity and access to capital, LonZim's strategy has always been to pre-fund its portfolio of operations to enable them to be first back to market,” White said.

The company is completing a US$1.7 million refurbishment of its world renowned Leopard Rock hotel and adds that Paynet – an electronic funds transfer system serving the country’s banks – is also in a strong position to grow as the country’s financial services sector recovers.

The group’s regional Fly540 airline is expected to launch its Zimbabwe operations with a limited service “to provide some domestic lift and service the international market requirements from neighbouring country operations.”

“Zimbabwe remains a key target market for Fly540 once international traffic numbers start to build, and the airport at Harare airport is of long term strategic importance as one of the best infrastructure facilities in Southern Africa,” the company said.



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Fly540 Zimbabwe was expected to deliver affordable air links to key domestic and regional cities from a Harare hub with LonZim saying the venture was central to its “investment strategy of identifying current market opportunities in Zimbabwe and establishing companies that will benefit from the economic recovery of the country”.

“We are confident that Zimbabwe has a future. The people of Zimbabwe remain one of the most industrious, valued and skilled work-forces on the Continent, the basic infrastructure across the country is strong and Zimbabwe remains a beautiful destination with significant tourism and agricultural potential.

“The opportunity for the country to once again become a leading African economy remains tantalisingly available,” White said.

Labels: LONRHO, LONZIM, NEOCOLONIALISM

posted by MrK @ 4:00 PM