Published: 14 April 2025

Zimplow, one of Zimbabwe's biggest suppliers of farm and construction equipment, is grappling with two stubborn challenges that have become all too familiar: the rise of the informal market and exclusion from the Chinese-dominated mining sector.

Across its key divisions - from ploughs and tyres to bolts and tractors - Zimplow is seeing growing pressure from informal traders offering cheaper, often smuggled products.

One of Zimplow's flagship products, the Mealie Brand plough, is a mainstay for smallholder farmers. But after last year's drought, the worst in four decades, that division slipped into a loss. With farmers under pressure, Zimplow slashed prices by 21% - even as the market was being flooded with illegal imports.

"The volumes of smuggled spares and implements continue unabated despite authorities tightening the border controls," the company notes.

Zimplow also owns TrenTyre, which saw revenues fall 29% as sales slumped. Several branches were closed. "Competition from cross-border informal traders has resulted in the fitment centres coming under increasing overhead pressure," the company reports.

While Zimplow recorded an 11% rise in tractor sales and a 34% increase in farm implement sales, it says informal "runners" are helping customers dodge statutory charges - hurting genuine part sales and cutting into margins.

Its nail manufacturing unit, CT Bolts, is also feeling the pinch. Sales fell 4%, and rent went up 61%. A new nail production line was delayed by civil unrest in Mozambique, and informal competition continued to bite. "The impact of the informal market is also keenly felt by the business unit," the company says.

Zimplow is now banking on competitive pricing, stronger service, and lower overheads to claw back ground from informal traders. "The impact of the informal market will continue to be felt by TrenTyre and CT Bolts, but measures to be more price competitive, offer the best-in-class service and lower overheads are expected to translate to profitability."

In the mining sector, Zimplow faces a different but equally deepening challenge for Zimbabwean suppliers - Chinese dominance. Zimplow is a key supplier to miners, providing Develon earthmoving equipment and other services. But it is increasingly sidelined as Chinese-owned mines, which dominate the market, choose to buy exclusively from Chinese suppliers.

"Softer platinum and chrome prices have delayed several large projects," Zimplow reports. "Chinese mines, which currently make up approximately 80% of all mines, generally buy exclusively from Chinese suppliers, reducing the rest of the mining equipment suppliers to 20% of the market, which leads to further pressure on margins."
- newZWire

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