Group Five targeting more concessions in Zimbabwe

Group Five targeting more concessions in Zimbabwe
Published: 03 March 2014

Diversified South African construction company, Group Five, says it is targeting concessions opportunities in Zimbabwe.

This was said by CEO Mike Upton while presenting the company's results for the six month’s period to December.

This would be in addition to the R1,8 billion Infralink road construction project that was launched early last year in Zimbabwe, which includes the construction of toll plazas that will also be operated by the company.

The Infralink road contract forms part of the Zimbabwean Government's strategic initiative to upgrade the logistics networks in Zimbabwe to support anticipated growth in the economy.

The development loan for the Infralink contract was provided by the Development Bank of South Africa (DBSA) and represents the largest single loan granted by the DBSA for a development project in Zimbabwe and the second biggest loan granted by the DBSA outside of South Africa.

Upton also said they will also be targeting concessions in Zambia, Tanzania, Ghana and Nigeria.

Observers say that Group Five's increased regional focus has been driven by slow rollout of concession projects in South Africa, which has stifled the company's short-term concessions growth.

In terms of performance, the company achieved an improved six months to December as revenue was bolstered by energy sector and building work.

Revenue from continuing operations rose 55,7 percent to R7,7bn, though continued pressure on margins saw operating profit from continuing operations growing a slower 27,5 percent to R328 million.

Amid stagnant domestic construction conditions in which competition has kept margins low, the group has been looking to diversify revenue with opportunities in the rest of Africa and building its concessions business.
- BH24
Tags: Group5, Roads, Zimbabwe,

Comments

Latest News

Latest Published Reports

Latest jobs