Investment falls short: Stewart Mangoma

Murray and Roberts is on target to achieve its $70 million revenue forecast in the year to June 2012, despite having a below budget performance in the four months to October 31, CEO Stewart Mangoma said that the company’s AGM on Thursday.

This is despite low aggregate demand across Zimbabwe’s economy and liquidity constraints in the money market having led to an untenable situation for rehabilitation and investment in long-term infrastructure projects.

In its audited results for the year ended June 30 2011, Murray and Roberts said investment in key sectors of the economy, particularly energy and general infrastructure development had been well below expectation.

Investment in the Zimbabwe’s infrastructure has been deterred by uncertainty over government policy that has largely been viewed as inclined towards expropriation of private property.

Mangoma said the construction division was currently breakeven, and there had been improved activity, especially when it came to mining and infrastructure projects. Mining now contributed 23% of revenue compared with 12% last year.

Post published in: Business

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