Masimba Holdings Revenue Drops 43% Amid Shift Away...

Masimba Holdings Revenue Drops 43% Amid Shift Away from Government Projects

Oscar J Jeke

Zim Now Reporter

Masimba Holdings has reported a 43% drop in revenue for the first quarter of 2025, as the construction firm strategically reduces its exposure to government contracts and pivots towards more reliable private sector clients.

The company’s revenue fell to US$8.1 million, down from US$14.3 million in the same period last year. The decline comes as Masimba distances itself from state infrastructure projects, citing delayed payments that have strained its financial position.

“The decline in revenue was attributable to strategic initiatives to manage exposure to public works and focus on growing private work,” the company said in its latest trading update. It added that private sector clients now account for 92% of its revenue, a sharp increase from 40% in the same quarter last year.

Masimba, one of the major contractors involved in government projects such as the Beitbridge highway upgrade, said it had suspended some public sector works to manage credit risk. While state contracts helped build its order book and expand capacity in previous years, inconsistent payments have forced a reassessment.

Finance Minister Mthuli Ncube recently acknowledged the problem, telling Parliament in April that the government was in arrears with several infrastructure contractors. “As the government, we acknowledge that we have been in arrears with contractors, particularly those in the transport and infrastructure sectors. This is due to cash constraints that we face,” Ncube said.

He added that Treasury had disbursed US$15 million toward settling part of the arrears for Beitbridge highway contractors, although the total amount still owed was not disclosed.

While focusing on the private sector has brought greater payment security, Masimba’s private projects have met their own challenges. At the Karo platinum mine, where Masimba is undertaking civil works, progress has been slowed by falling global platinum prices. In addition, heavy rains disrupted several projects during the quarter.