HIGH demand for housing is seen providing a critical mass for a profitable year for local brick maker Wildale Limited, with the firm having recorded 20% revenue growth in the half year ended 31 March 2021.
RONALD MUCHENJE
Zimbabwe’s housing backlog stands at 1.5 million but the government early this year pledged to clear it despite Covid-19-related challenges.
Willdale chairperson Washington Chidziwo, in a statement accompanying the company’s results, said the brand continued to exert its dominance in various projects nationally, particularly in housing development as the line of business is expected to contribute significantly to the topline given the government’s current drive to reduce the housing backlog.
The ongoing improvements in the economic conditions should unlock a lot of projects which have been dormant.
“High demand for housing will provide the critical mass for a profitable year, the declining inflation rate and a stable exchange rate should bring about opportunities for real growth in the industry. We anticipate a return to affordable lending for housing development as a result of economic stability. We are encouraged by the nationwide Covid-19 vaccination programme championed by the government,” he said.
During the period, the Wildale production plant underwent extensive annual planned maintenance.
Production resumed in February after the rainy season and is currently close to optimal levels.
Targets for the year are on course to be met if electricity supply remains stable.
The government also considered and approved the Zimbabwe National Human Settlements Policy which sought to inform implementation of the relevant aspects of Agenda 2030 (Sustainable Development Goals), the African Union Agenda 2063, Zimbabwe’s Vision 2030, the national constitution and national and international resilience frameworks.
The policy will introduce a raft of changes that will ensure that planning, development and management of settlements is in line with national and international disaster risk reduction frameworks, and with environmental and climate change policies, laws and standards.
This is expected to address the huge housing and social amenities backlog as well as widening disparities between rural and urban areas while reducing the high costs of building materials and housing finance.
