Zimbabwe Stock Exchange (ZSE)-listed companies are optimistic about prospects in the new year and expect the prevailing stable operating environment to continue, underpinned by the tight monetary policy and improved fiscal discipline.
According to recent trading updates, several listed firms said macroeconomic stability, combined with positive agricultural prospects and firm global commodity prices, could help anchor demand recovery in 2026.
Analysts contend that if macroeconomic conditions continue to stabilise, the economy could attract more long-term institutional capital that is critical for financing company operations.
Zimbabwe has experienced significant macroeconomic improvements, primarily characterised by a strong economic rebound in Gross Domestic Product growth, a new stable currency (ZiG) and a sharp decline in inflation.
ZiG), which was introduced in April 2024 to replace the Zimbabwe dollar, has helped significantly reduce exchange rate pressures and lower annual inflation, which dropped to 15 percent in December, down from over 95 percent in June.
Economic growth has been broad-based.
Agriculture rebounded sharply due to improved weather conditions after the previous year’s drought.
Mining (especially gold and lithium) and manufacturing have shown robust growth, supported by higher global commodity prices and increased industrial output.
Construction and service sectors have recorded positive growth, with increased building activity and an expansion in finance, insurance and communication services.
Zimbabwe’s current account has remained in surplus, supported by resilient export performance and strong remittance inflows.
The Government’s efforts on regulatory reforms and infrastructure development projects (such as the expansion of the Robert Mugabe International Airport and the Trabablas Interchange construction) have been noted by institutions like the World Bank as contributing to an improved business environment and job creation.
Sugar processor Starafricacorporation said it anticipates the stable operating environment to persist, supported by a tight monetary policy and fiscal discipline, while citing agriculture and mining as key demand drivers.
The company expects a positive agricultural output and strong mineral prices to help support consumer spending, although unresolved policy issues around sugar tax and VAT classification continue to squeeze margins.
“A positive agricultural outlook and strong mineral prices are expected to act as anchors for a recovery in consumer demand.
“Nonetheless, the lack of progress in addressing key value chain issues on the sugar tax and VAT classification continues to negatively impact margins,” group chairman Mr Rungano Mbire said in a trading update for its half-year period to September 30, 2025.
Mr Mbire said the company would continue to engage the Government through the Zimbabwe Sugar Association on the important policy matters, which may impact Zimbabwe’s plans to double output in the next 10 years.
Zimbabwe’s economy is on track for a period of sustained growth in 2026, supported by mining, coupled with easing inflation.
Finance and Economic Development Minister Professor Mthuli Ncube has projected 6,6 percent growth this year, from 2 percent in 2024.
Additionally, as the country transitions to the National Development Strategy 2 (NDS2 2026-2030), stability will be critical.
The NDS2’s focus includes structural transformation, productivity and inclusive growth, which requires long-term capital allocation and patient investment.
Across the market, companies are aligning operational strategies to the evolving stable macroeconomic landscape, prioritising cost control, investment efficiency and engagement with policymakers.
CFI Holdings chairperson, Ms Valerie Pasi, said the group was sharpening procurement strategies, particularly for grain commodities, while prioritising continued investment in its milling operations to support long-term competitiveness.
“The company is also acutely aware of intensifying competition from the informal sector, prompting the need for more proactive trading strategies,” she said.
Beyond core operations, she said CFI’s long-term outlook is tied to property development, with a renewed focus on low-cost housing delivery in Harare South in line with the government’s Vision 2030 housing targets.
Agriculture-linked counters remain central to the ZSE outlook, particularly as seasonal forecasts point to improved rainfall patterns.
SeedCo Limited said food security remains a strategic priority across Africa, with the 2025/26 seasonal outlook forecast to experience normal to above-normal rainfall across much of Southern Africa, while parts of East Africa are expected to receive below-normal rainfall.
The company is leveraging its broad and adaptive product portfolio to ensure seed availability across divergent climatic zones.
“The group remains well-positioned through its diversified, climate-smart hybrid portfolio and strong value proposition to smallholder farmers,” SeedCo Limited said.
Hippo Valley Estates reported improved production performances during the season, driven by increased mill uptime and an efficient cane delivery system now largely reliant on in-house equipment.
Post the interim period, Hippo completed its crushing season on a positive note, with cane crushed rising marginally to 1 771 051 tonnes, resulting in sugar production of 221 017 tonnes, a 1 percent increase on the prior year.
The company said Project Zambuko initiatives focused on cost reduction and revenue enhancement were already yielding benefits and aimed at positioning the business as a low-cost producer.
Hippo emphasised the need to boost exports, which remain below management targets, while exploring alternative disposal strategies to promote raw sugar uptake.
“Sugar availability is guaranteed in Zimbabwe,” Hippo said, urging authorities to discourage imports and support local production that meets health standards.
ART Corporation expressed confidence that the restructuring undertaken in 2025 had laid a solid foundation for recovery.
The group’s priorities include completing non-core asset disposals to unlock liquidity, restoring profitability, maintaining strict cost discipline and leveraging strong brands to regain market share.
The company welcomed ongoing Government reforms, particularly stronger enforcement against illegal imports and counterfeits, growing import substitution and improving macroeconomic stability.
Market analysts say the optimism expressed by listed companies in prospects for the new year was justified, given recent policy signals.
Economist Mr Malone Gwadu said the commitment to tight monetary policy and fiscal restraint has helped stabilise inflation expectations and restore a degree of predictability to business planning.
“While growth remains fragile, the emphasis on monetary discipline is critical for listed companies, especially those reliant on long-term capital allocation and import planning,” he said.
Another economist, Mr Walter Mapfumo, added that agriculture-focused companies could outperform well if the seasonal outlook remains good as projected.
“Companies exposed to food security, seed production and agro-processing stand to benefit from improved rainfall and policy support, but currency management and cost control will remain decisive,” he said.
Mr Mapfumo also noted that firms with strong balance sheets and diversified revenue streams are better positioned to navigate lingering challenges, particularly in consumer-facing sectors still grappling with informal sector competition.
According to the industry body, the Confederation of Zimbabwe Industries (CZI), growing policy consistency is a positive signal for manufacturers and listed firms, stressing the need for sustained engagement to address value chain bottlenecks.
CZI said issues such as tax alignment, import controls and support for local procurement remain critical to unlocking industrial growth and protecting formal businesses. – Sunday Mail
