Business Reporter
THE National Tyre Services (NTS) has commended the prevailing currency stability efforts for improving pricing clarity across the country’s economic sectors and implored authorities to safeguard the gains going into the immediate future.
Zimbabwe currently maintains a tight monetary policy, characterized by high interest rates and control over the money supply, to anchor price and exchange rate stability, especially after the introduction of the gold-backed Zimbabwe Gold (ZiG) currency in April 2024.
This approach, led by the Reserve Bank of Zimbabwe (RBZ), aims to combat inflation and promote economic growth, though its effects are felt differently by various sectors.
Presenting the financial performance report for the year ended March 31 2025, NTS board chairman, Rutenhoro Moyo hailed the obtaining measures for sustained stability.
“The country’s operating environment showed signs of short term stability and growth potential. The new currency reforms introduced by the Reserve Bank of Zimbabwe at the beginning of the year 2025 have brought about market stability and controlled inflation, boosting market confidence,” he said.
NTS however bemoaned the growing informalisation of the economy saying it is impacting negatively on formal businesses while exposing the retail sector to unfair competition stemming from informal market practices including smuggled goods that are often sold exclusively in United States dollars.
Moyo insisted that competitiveness in the market can only be achieved through the government measures of streamlining regulatory processes and curbing smuggling of imports into the country.
During the period, sales volumes declined by 25% to ZWG 14 358 489.Gross profit declined by 41% to ZWG 45 969 409.Total operating expenses decreased to ZWG 70 132 646.The company incurred a loss before tax of ZWG54 574 959.
Resultantly , the company’s directors said they have considered it prudent not to declare a dividend in consideration of the need to enhance working capital in the business on the back of anticipation of increased tyre demand driven by the ongoing Government infrastructure projects , including road rehabilitation works, particularly in the commercial and transport sectors.
The proposed measures to curb smuggling of goods including tyres ,Moyo said will promote fair competition and support formal businesses.NTS expressed optimism that the new supply chain strategy of importing affordable and meticulously engineered tyre brands is robust enough to achieve seamless stock supply and competitiveness.
“As we look ahead to the Financial Year 2026, we are optimistic that the stability in currency and foreign exchange rate will prevail. The local currency has shown notable stability since its inception in April 2024, bringing improved pricing clarity and predictability to our pricing operations,” added Moyo.
