Categories: Stories

Business booming for Turnall

Where in the world would a company, which technically has no owner, make a hefty 1 377 percent increase in net profit in six months and still hope to do better than that?

Only in Zimbabwe, a land full of contradictions where the economy is reportedly on the brink of collapse but some companies are doing booming business.

Turnall Holdings, which manufactures asbestos cement products such as asbestos roofing sheets and pipes, made a net profit of Z$44.1 billion in the six months to June compared to only Z$3 billion during the same period last year.

Even in inflation adjusted terms, its profit increased by 106 percent to $1.9 billion.

According to its results released today, Turnall’s sales soared from $23.1 billion to $168.5 billion.

The company currently has no direct owner as it was part of fugitive businessman Mutumwa Mawere’s empire and is therefore a state specified company falling under the Reconstruction of State Indebted Insolvent Companies Act.

Mawere, who is now living in South Africa, skipped the country last year following allegations that he had externalised $300 billion. He denied the charges claiming that the government was after him because he had refused to become ZANU-PF provincial chairman for Masvingo claiming that he was not even a member of the ruling party.

Mawere owned a vast empire which included the Shabani and Mashaba Mines (SMM), the country’s largest asbestos mining company, as well as insurance, agricultural and financial holding companies.

The empire whose assets run into billions was placed under a government-appointed administrator Afaras Gwarazimba last year.

Turnall says it expects to do better during the second half because traditionally it contributes 60 percent of the company’s business.

The company is expected to do exceptionally well because of the government sponsored housing construction programme, Operation Garikai/Hlalani Kuhle, as it will be the major supplier of roofing material.

It also says it will benefit from the Parastatals and Local Authorities Reorientation Programme as well as the national housing scheme which has been allocated nearly $2 trillion by the central bank.

 

(21 VIEWS)

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024

The Zimbabwe government and not saboteurs sabotaging ZiG

The Zimbabwe government’s insatiable demand for money to satisfy its own needs, which has exceeded…

October 20, 2024

The Zimbabwe Gold will regain its value if the government does this…

Economist Eddie Cross says the Zimbabwe Gold (ZiG) will regain its value if the government…

October 16, 2024

Is Harare the least democratic province in Zimbabwe?

Zimbabwe’s capital, Harare, which is a metropolitan province, is the least democratic province in the…

October 11, 2024

Zimbabweans against extension of presidential term in office

Nearly 80% of Zimbabweans are against the extension of the president’s term in office, according…

October 11, 2024

Zimbabwe government biggest loser when there is a discrepancy in the exchange rate

The government is the biggest loser when there is a discrepancy between the official exchange…

October 10, 2024