Zimbabwe’s corporate sector continues to walk a fine line between resilience and strain as firms grapple with rising taxes, inflation, high energy costs, and fragile consumer demand.

Financial results released in October by Simbisa Brands, WestProp Holdings, and Zimplow Holdings capture this uneasy balance — evidence of ingenuity under pressure and the toll of persistent economic headwinds.

Simbisa:  defies sin tax to grow

Simbisa Brands Limited, the region’s largest quick-service restaurant group Simbisa recorded 7% revenue growth to US$306 million with Zimbabwe delivery volumes up 42% thanks to its digital and electric-vehicle delivery drive

Conversely the group paid nearly US$1 million in the new Fast Food Tax during the year ended June 30 2025. The 1% levy, introduced in January, was absorbed fully by the company rather than passed to customers in an already price-sensitive market.

The move protected affordability but squeezed margins. “Higher IMTT charges and increased energy costs significantly raised operating costs, while demand remained fragile,” Simbisa said.

Economists warn that taxes such as the IMTT and Fast Food Tax are undermining competitiveness in the formal sector. UK-based development economist Chenayi Mutambasere called the policy “punitive,” noting that it discourages formal business transactions in a country where electronic payments dominate.

Simbisa now runs 604 company-owned stores and is investing in biodegradable packaging as part of its sustainability strategy — proof that innovation remains its best defence.

WestProp: Property confidence boxed by cost reality

In property, WestProp Holdings Limited posted a US$2.65 million profit for the half year to June 2025 — down from US$4.38 million in 2024 — as delayed project handovers and rising finance costs slowed momentum. Revenue eased to US$12.82 million from US$14.23 million.

Despite the dip, the developer behind Pomona City, Pokugara Residences, and Millennium Heights sustained a solid 53% gross margin through cost control and efficiency.

Chairman Michael Louis said long-term prospects remain strong, citing projects such as the Radisson Millennium Heights Aparthotel and the Mall of Zimbabwe, expected to break ground in early 2026 in partnership with South Africa’s Exemplar.

“To my fellow board members and the executive team under Mr Ken Sharpe, we acknowledge your tireless efforts,” Louis said, reaffirming the firm’s audacious goal of ‘one billion bricks by 2050.’

Zimplow: Industrial optimism meets structural pains

Agricultural and industrial equipment manufacturer Zimplow Holdings narrowed its loss before tax to US$718,499 for the half year to June 2025 — a 37% improvement on the US$1.14 million loss a year earlier.

A stronger agricultural season and better mining output lifted demand for implements, but the company still battled limited access to medium-term financing and a flood of grey imports undermining local brands such as Mealie Brand and Trentyre.

CEO Willem Swan said cost-control measures, staff rationalisation, and supplier negotiations helped offset surging municipal rates, energy bills, and taxes. “We reduced cost pressures by seven percent compared to the previous year,” he noted.

The group now plans to extend Mealie Brand’s engineering capacity into mining, dispose of non-core assets, and develop a mining and logistics hub at its Msasa site.

Fragile, yet adaptive

Together, these results sketch a portrait of an economy adapting under duress. Firms are innovating, digitising, and tightening belts, yet the fundamentals — weak liquidity, erratic power supply, and an onerous tax burden — continue to choke growth.

While mid-2025 exchange-rate stability offered temporary relief, inflation remains high, and household spending power is eroding. Formal businesses are absorbing rising costs to keep customers, while informal traders — operating largely untaxed — expand their edge.

Zimbabwe’s private sector is proving it can endure. The question is whether policy will evolve fast enough to let it thrive.