Proplastics positions for growth | Business Times

SAMANTHA MADE

Proplastics Limited, a publicly traded manufacturer of plastic pipes, is eyeing stronger performance across all its business segments  this year, buoyed by anticipated growth in private sector infrastructure investments and increased government expenditure on irrigation projects.

The company’s chairman, Angelin Mudada, outlined the group’s optimistic outlook.

“With an improved operating environment, the business expects stronger performance across all segments, driven by increased private sector investment in infrastructure and the government’s focus on irrigation projects,” she said.

To meet rising demand and support its growth ambitions, Proplastics has invested in additional production capacity.

“The group installed new production equipment towards the end of last year to enhance product availability, which is expected to provide a solid base for revenue generation this year,” Mudada revealed.

Power supply, a critical factor in the group’s operations, is also expected to stabilise.

Improved water levels at Lake Kariba, following sustained rainfall, are anticipated to enhance national electricity generation. Proplastics has further boosted its energy resilience by commissioning a half-megawatt solar plant in 2024. Mudada noted that this initiative will “positively impact power supply for the plant, thereby enhancing our efficiencies.”

Despite the forward-looking optimism, Proplastics acknowledged the challenges it faced in 2024.

The operating environment remained difficult, marked by liquidity constraints, currency volatility, and a delayed fiscal policy framework.

The first half of the year was particularly weak due to suppressed demand and the disruptive effects of the El Niño-induced drought.

Adding to these pressures was the government’s prioritisation of urban road infrastructure ahead of the Southern African Development Community (SADC) Summit hosted in Zimbabwe.

According to Mudada, this reallocation of resources affected the funding of key water, sanitation, and irrigation projects, further constraining Proplastics’ core markets.

“Government faced constraints in funding these projects due to the much-needed upgrade of urban roads in advance of the SADC Summit,” she explained.

Nevertheless, the group reported an improvement in its financial position. Total assets increased by 8% to USD24.7m, up from USD22.8m in the prior year, signalling a strengthened balance sheet that could support future expansion.

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