eBusiness Weekly
Enacy Mapakame
Sugar processor, Starafricacorporation, says its property business has seen significant recovery with revenue more than doubling during the half year to September 30, 2022.
The growth comes as businesses across sectors are seeing recovery from the adverse impacts of Covid-19 pandemic, which had a knock on effect on operations since the pandemic was first detected in China in December 2019.
In the property industry in particular, the sector suffered voids especially in the central business district (CBD) office space as businesses adopted remote working as opposed to office working.
This was also coupled with the need to move to more serene environments like office parks and suburban offices as well as cheaper options.
But during the half year period to September, Starafricacorporation’s started seeing significant recovery in its property business. Revenue performance, for this business, improved significantly by 109 percent to $100,19 million of rental income being recorded, compared with the $47,8 million in the prior comparative period.
“The unit has recovered significantly from prior year, which was negatively impacted by the Covid-19 pandemic, which reduced tenants’ ability to generate income and meet their rental obligations.
“Following the waning of the pandemic, occupancy rates and, consequently, rental collections have increased across the property portfolio,” said chairman Dr Rungano Mbire.
Sector-wide, there has been significant recovery experienced with the capital city Harare recording a hive of activity, post Covid-19 pandemic.
From housing developments to commercial developments, developers have been busy as they angle to cash in on the anticipated post Covid -19 recovery. The developments cut across sectors – from retail, housing, commercial as well as industrial and warehousing facilities whose demand is high due to increased activity in mining and agriculture.
Meanwhile, Starafricacorporation’s overall revenue for the half year period jumped 40 percent to $20,90 billion from $14, billion on the back of strong demand across group’s product range.
But operating profit went down 4 percent to $1,35 billion compared to $1,4 billion recorded during the same period last year.
Dr Mbire said the decline was a direct result of increases in raw sugar prices and operating costs in real terms. Increasing global inflationary pressures have resulted in a spike in the costs of imported chemicals, packaging and refinery spares.
The period under review remained challenging for the business despite efforts made to tame them.
“The half year period under review was characterised by rising inflationary pressures and exchange rate volatility, combined with heightened economic uncertainty emanating from the Russia-Ukraine conflict.
“This continued to undermine economic recovery from the challenges associated with the Covid-19 pandemic in the prior year comparative period,” said Dr Mbire.
