African Sun sees growth in tourism

Harare – Hospitality group, African Sun Limited says the expansion of the Victoria Falls airport and runway in Matabeleland North province to accommodate larger aircrafts is expected to increase foreign tourist arrivals in the resort town.

In Matabeleland North, the group operates the Victoria Falls Hotel, the Kingdom Hotel and Hwange Safari Lodge.

In the five months to May, revenue for the group was US$14.09 million (23 percent down from last year) as a result of difficult trading conditions and reduced demand in the country signified by the negative inflation of -2.47 percent, the depreciation of the regional currencies, particularly the South African rand and change in Southern African Development Community (SADC) and African Union chairmanship from Zimbabwe, which resulted in one-off business that came the prior year.

Other reasons include  the occupancy that  was at 35 percent compared to 44 percent same period last year as room night sold declined by  22 percent and a reduction of 17 percent in operating costs from 2015.

Despite the reduction in revenues by 23 percent for the five months ending May 2016, African Sun achieved a loss of US$740 000 down from a 2015 loss of US$1.87 million.

African Sun Chief Executive Officer, Edwin Shangwa, says an increase in tourist arrivals was expected in the second half of the year.

“The expansion of Victoria Falls airport and runway to accommodate larger aircraft is likely to increase foreign arrivals in Victoria Falls. We anticipate an increase particularly during the peak season,” he says.

“Improved airline connectivity between Harare and Victoria Falls will influence domestic arrivals into these two destinations.”

It said business will continue to be supported by the resilient international market.

“Due to subdued revenues we have taken steps and we will continue to reduce costs to align to performance. H2 (Second Half Peak Season) is expected to drive recovery from the subdued H1 (First Half) performance.”

In April this year, African Sun shut down its loss-making hotels in and outside Zimbabwe and has since been undertaking major cost rationalisation measures to bring back existing operations to profitability.

Hotels closed include Amber Accra Hotel in Ghana and the local operation Beitbridge Express as well as other operations in Nigeria, Mauritius and South Africa. The closures were meant to halt cash drain from the profitable Zimbabwe operations. African Sun has changed its business model from a hotel operator to hotel Investment Company.

Source: African Sun sees growth in tourism (08/07/16)

Zimbabwe: Government Policies Hurting Tourism

Tourism players have appealed to government to revisit some of its policies that are negatively affecting the industry which is currently grappling with subdued tourist arrivals.

There is unanimity among industry actors that tourism is a key growth driver and Treasury estimates that the sector is set to grow by more than 4,7 percent this year and maintain moderate growth of above four percent.

Finance Minister Patrick Chinamasa has highlighted that government supports interventions meant to enhance tourism, which include marketing, relaxing the visa regime, investment in tourism and related infrastructure and promotion of the "Open skies policy."

However, industry players said they were suffering from the dire effects of some government policies whose existence directly affects operations and tourist arrivals.

Two years ago, government introduced a 15 percent Value Added Tax (VAT) on accommodation and recently came up with Statutory Instrument 64 of 2016 which restricts the importation of a range of goods into the country without a licence or import permit.

Tourism players who include hoteliers and tour operators held an urgent meeting last week under the auspices of the Zimbabwe Tourism Authority (ZTA) where they implored the ZTA board, led by Chipo Mutasa, to immediately engage government over the issues.

Zimbabwe Council for Tourism (ZCT) representative, Barbra Murasiranwa, told the meeting that the sector was saddled with a number of challenges that needed urgent attention.

Murasiranwa said even the 15 percent VAT introduced by government two years ago needs re-visiting as it was directly affecting tourism.

"Something still needs to be done about VAT. It's making our destination expensive. We want to bring business to the country through luring tourists, but we can't do that when our products are this expensive. We can attract more tourists if VAT is removed," said Murasiranwa.

She said some countries such as Kenya and Tanzania had scrapped VAT to attract more tourists into their countries. ZCT has also appealed for a one-stop-shop where all licence fees and permits could be applied for and obtained under one roof.

Murasiranwa called for decentralisation of licence offices to respective towns where tour operators could, for instance, apply for permits in Victoria Falls or any other town they are domiciled in rather than having to travel to Harare.

"We also need a one-stop-shop where operators can apply for permits and licences and do away with multiple licences. There are as many as 20 licences needed to run helicopter and boats (services) and all these are obtained from Harare and Bulawayo. Fees should be reasonable as well," she said.

Murasiranwa said the industry still needed assistance regarding the prolonged rates impasse between hotels and the Victoria Falls Municipality.

African Sun Hotel group and the local authority recently clashed over a US$400 000 bill in unpaid rates, which had skyrocketed following a disputed 500 percent tariff increase.

"The rates issue between (Victoria Falls) hotels and the council is still pending. The council introduced a 500 percent increase in rates resulting in a number of meetings after we complained about the issue. The rates were then reduced by 20 percent, but hotels are still appealing for a relook into this because the figure is still high," said Murasiranwa.

Mutasa said they would return to the resort town with a response within a month.

Source: Zimbabwe: Government Policies Hurting Tourism (07/07/16)

African Sun retrenches over 200

Zimbabwe Stock Exchange-listed hospitality group, African Sun, said it has retrenched nearly 250 employees as a survival strategy in the face of dwindling tourists’ arrivals and the harsh economic environment.

The group’s managing director, Edwin Shangwa, said the staff rationalisation exercise will result in improved efficiency.

“In 2015, our corporate oversight structure was streamlined for cost and operational efficiency resulting in a headcount reduction from 42 to 14 purpose-fit and focussed professionals,” he said in the hotelier’s annual report published recently.

“Our hotels shed 219 employees by way of retrenchment to ensure employment cost shifts closer to a semi-variable as opposed to fixed cost model as our business is highly seasonal and cyclical,” he added.

Shangwa noted that the gains of the headcount restructuring process are expected to manifest, embed and deliver financial value in 2016 and operational efficiencies. “Cost reduction initiatives which are already underway will certainly drive performance,” he said.

The latest development comes after African Sun, which was spun off from Delta Corporation in 2003 to unlock shareholder value, went through a transition from a hotel operating company to a hotel investment management company with effect from October last year.

The change in business model resulted in the strategic business units being classified as hotels under management, franchised hotels, owner managed hotels and the Victoria Falls hotel partnership. Shangwa said this also resulted in the appointment of the Legacy Group of Hotels to manage five hotels.

“Legacy Hotels and Resorts owns and manages a collection of four and five-star hotels, bush lodges, leisure resorts and casino resorts in key tourism and business locations throughout Africa and is expanding into the emerging European and Middle Eastern markets.

“This new model also saw an enhanced and improved relationship with Intercontinental Hotels Group,” he added.

African Sun, which recently exited some of its loss-making operations in Ghana and Beitbridge, recorded an $8,31 million loss in the 15 months to December 2015 compared to a loss of $2,29 million posted in the previous corresponding period.

In the period under review, the group’s revenue decreased by eight percent to $63,15 million due to a noticeable decline in the average monthly revenues during the period under review.

The drop in average monthly revenue was mainly as a result of a five percent reduction in the average daily rate from $98 achieved last year to $93.

The listed hotel group said the average daily rate drop was partially attributable to the introduction of 15 percent value added tax on foreign revenue.

“Occupancy marginally increased to 49 percent from 48 percent. The effect of the drop in the average daily rate and the marginal increase in occupancy was a four percent drop in revenue per available room from $47 to $45,” the hotelier said.

African Sun hotels include Holiday Inn in Harare and Bulawayo, Elephant Hills (Victoria Falls), Troutbeck Inn (Nyanga), Caribbea Bay (Kariba), Beitbridge Express, Monomotapa Hotel (Harare), Great Zimbabwe (Masvingo), Victoria Falls Hotel, Kingdom at Victoria Falls, and Hwange Safari Lodge.

Source: African Sun retrenches over 200 (21/06/16)

African Sun clears $200k Vic Falls debt

African Sun Limited has paid more than $200,000 to clear its outstanding rates and water bills to the Victoria Falls Municipality.

In June last year, the hotel group was issued with summons in respect of the outstanding rates amounting to $383,000 owed by three of its hotels — The Victoria Falls Hotel, the Elephant Hills Resort and The Kingdom Hotel — in the resort town.

The amount took into account an increase of at least 250 percent on the rates and water bills. The listed hotel group had stopped payments as the company felt the increment was too high at a time the company’s hotel units were operating below capacity.

After it was issued with summons, the group engaged the council with a view to break the impasse.
African Sun has 731 rooms in Victoria Falls, about 66 percent of the resort town’s accommodation capacity.

African Sun and the town council agreed to resolve the matter out of court after the former came up with a debt payment plan, which was accepted by the municipality.

The hotel group had proposed a rate, which would have seen it paying a total $203,000 to clear the arrears. But the council declined to reduce the rate and instead offered a discount on condition that its proposed amount was paid by December 31.

The group proposed monthly rates of $7,800 for Victoria Falls Hotel, $7,500 for Elephant Hills and $5,500, $1,271 for the Kingdom at Victoria Falls Hotel.

Council had proposed much higher rates at $9,620,22, $9,426,73 and $8,409,31. The municipality had hiked rates from $3,018, $2,985 and $1,271 respectively, for the group’s three hotels.

The council argued that it could not reduce rates, which had been gazetted, midway into the financial year unless it was to be done through a supplementary budget and all processes were followed to either reverse or reduce the gazetted rates. But they promised the “proposal will certainly be considered in the budget for 2016.”

African Sun paid a total of $202,890 in three equal installments of $67,630 by December.
“It’s the company’s view that all due process was followed and this matter was concluded and the municipality accepted the company’s proposal. All the arrears to Victoria Falls Municipality from July 2015 to the end of December 2015 for the three hotels were paid in full,” the hotel group said. The municipality said it acknowledged the difficulties faced by African Sun considering the difficulties in the business environment.

“Victoria Falls in its full special council meeting held on October 22, 2015 resolved to accept your proposal in its entirety contained in your letter dated October 9 2015. The council appreciates the finality of this matter, which was made possible by your commitment and sincerity in the discussion on the matter,” the council said.

African Sun, however, said that the only outstanding matter is that the municipality of Victoria Falls has not yet approved the proposed rate for 2016 for its three hotels.

Source: African Sun clears $200k Vic Falls debt (24/02/16).

Victoria Falls tourist arrivals slump

(Zimbabwe) Tourist arrivals at Zimbabwe’s prime resort, Victoria Falls have plunged to below 85% on average in 2015 compared to last year’s numbers due to the introduction of the value added tax (VAT) and depreciation of regional currencies, an official has said.

Employers’ Association of Tourism and Safari Operators president, Clement Mukwasi, told NewsDay that tourist arrivals in Victoria Falls were expected to fall to below 85% compared to last year in the same period. “We are expecting to achieve below 85% of last year’s figures on average,” Mukwasi, who is an executive of the Shearwater Adventures Group, said. He said the numbers of tourist arrivals were declining as regional currencies were weaker, making Zimbabwe more expensive compared to its neighbours.

“You will find out that tourists from these countries, such as South Africa, prefer to go to countries with weaker currencies than theirs,” he said.

Tourism players are still crying foul over the introduction of VAT on foreign tourists’ payments for accommodation and tourism-related services.

The move has been described as “not intelligent” by Tourism minister Walter Mzembi, as it makes the country an expensive destination.

The industry is also on the recovery path, following the Ebola virus outbreak in West Africa last year, which saw Zimbabwe losing business worth $6 million in 2014, according to the Zimbabwe Tourism Authority.

According to a report by the Zimbabwe Tourism Authority (ZTA), Zimbabwe’s overall tourist arrivals were at 930 276 in the first six months of 2015, compared to 876 163 registered in the corresponding period last year boosted by mainly South African visitors.

Mukwasi remained optimistic that next year would be better than 2015, as they had introduced a number of measures to keep the industry moving such, as three-tier approach system.

Meanwhile, Mukwasi commended the move by the government to declare Victoria Falls a tourism special economic zone, as it would have positive effects in addressing liquidity challenges in the country and revives the financial sector.

He said the declaration would facilitate entry of new players bringing competitiveness into the industry. Mukwasi said it was not only the tourism sector that would benefit from such a move, but also some players in the banking sector.

Addressing delegates at the just-ended Local Government Economic Development Forum 2015 in Bulawayo on Wednesday, ZTA chief executive officer, Karikoga Kaseke said Victoria Falls needed about 1 000 more rooms by 2020.

He said the country has become a transit route, as last year about 600 000 tourists passed through Zimbabwe to South Africa.

Kaseke urged the government to build a mall in Victoria Falls to make it a shopping destination for the Sadc region.

Source: Victoria Falls tourist arrivals slump (18/12/15)

Green Tourism unveils new initiative in Zimbabwe

Green Tourism unveils new initiative in Zimbabwe

A partnership with Green-Tourism.com, Zimbabwe Tourism Authority and Environment Africa sees the  a pilot project launched to introduce Green Tourism to Zimbabwe.

15-20 hotels will be selected for the pilot from the Victoria Falls area including Hwange National Park and Livingstone, Zambia. Following awareness training in December 2015 the hotels will be assessed in February 2016 for their awards.

These businesses will become the Founding Members of Green Tourism in Africa, they are: Cresta Sprayview Hotel, Pioneers Camp, The Victoria Falls Hotel, Victoria Falls Safari Lodge, Vintage Canvas & Camping andWild Horizons The Elephant Camp.

The memorandum of understanding agreed by the partnership entails a commitment to:

• Help tourism businesses become more sustainable
• Develop minimum Green Tourism standards for integration into a national quality assurance scheme
• Establish a Green Tourism awards scheme for Zimbabwe
• Identify the leading practitioners and supporters and develop a framework for mutual cooperation
• Mobilise resources through partnerships with interested stakeholders
• Promote awareness in the tourism industry of green tourism ethics and practices and disseminate them

Zimbabwe tourism businesses will get: awards based on their  performance  and achievements.

They will also get advice and assistance from qualified, trained environmental auditors, who will, amongst other things, help businesses identify cost savings and marketing opportunities.

Subject to a successful pilot, the project will be expanded to help and empower other businesses throughout the area.

Source: Green Tourism unveils new initiative in Zimbabwe

Tuesday, December 8, 2015

Legacy partners African Sun in Victoria Falls

AFRICAN Sun Limited (ASL) has entered into a partnership agreement with the Legacy Group of Hotels (LGH), to manage five of its hotels, with the aim to globalise the units and making them more competitive.

Legacy is among the largest hotel chains in South Africa, with operations in Gabon, Ghana, Namibia and Nigeria and d will manage ASL hotels from October 1.

ASL board chairperson, Hebert Nkala said last week that the new business model, which the group has adopted, will see a number of changes happening and is a move away from the traditional in-house hotel management model to hotel investment model.
Nkala said under this model ASL will globalise the hotels by contracting international hotel management companies of repute to manage selected hotels in the group.

“Legacy will take over management and embark on major refurbishment of the Elephant Hills Resort and Conference Centre, The Kingdom at Victoria Falls, Hwange Safari Lodge, Troutbeck Resort and Monomotapa Hotel,” Nkala said.

He said the group expects LGH to spend about $60 million in refurbishments and expansion over the next three years, with major refurbishments at Elephant Hills starting within the coming eight weeks.

He, however, said the new look ASL group will have three strategic business units or divisions which are the Legacy Group SBU with the five hotels headed by Legacy Group chairperson, Bart Dorrestein and his team.

The International Hotels Group (IHG), another hotel super brand, which retained its right to continue with the franchising structure with respect to Holiday Inn Harare and Holiday Inn Bulawayo and the soon to be rebranded Holiday Inn Mutare.

This SBU will be headed by Tich Hwingwiri.

The unbranded hotels business unit, which will be made up of the Victoria Falls Hotel, an affiliate of the Leading Hotels of the World, which the group is currently operating with its partner, Meikles Hotel.

Nkala said under this unit will also fall three of the group’s remaining hotels which will continue to be managed by ASL until their future was decided, Caribbea Bay Resort, which needs major refurbishment, Great Zimbabwe Hotel which needs an extensive product revamp and Beitbridge Express Hotel whose viability is still being assessed.

He said the units will report directly to ASL managing director Edwin Shangwa.

Nkala said ASL has begun making positive steps towards rationalising its regional exposure in the expansion projects across the continent and that, including other efforts on the home front, such as head office head count which has been reduced to 12 from 42.

He also said the group debt has been reduced to $9,8 million from $ 22 million as at August 31.

Nkala said ASL will disinvest from its regional operations.

“To that effect the, Amber Hotel Accra, Ghana lease agreement was mutually terminated effective August 31 2015 and management is in the process of engaging the West African Sun Hotels Limited, Nigeria with a view to exit by September 30 2015,” he said.

He added that the rationalisation exercise will result in savings of over $10 million per annum.

The savings will be concentrated back into ASL profitable Zimbabwe operations that are going to need substantial capital expenditure to bring them back to their former glory, Nkala said.

Source: Legacy partners African Sun in hotel management (21/09/15)

Zambezi Sun Rebrand

Following communication about the Minor Hotel partnering with Sun International in the regional product, please note that Zambezi Sun has been rebranded as Avani Victoria Falls Resort. There are currently no changes to the Royal Livingstone.

Source: Zambezi Sun Rebrand (09/01/15)

Victoria Falls reports good occupancies

Feedback from Go To Victoria Falls members reveals that arrivals into Victoria Falls have seen a turnaround. The monthly fair market share statistics at the end of July show a substantial increase from last year as well as previous years. This is in direct contrast to the current tourism arrival figures in other Southern African destinations.

According to occupancy records at seven different hotels, covering a total of 1 008 rooms, arrivals into the destination were up by 20%, based on the same seven-month period last year (January to July). This translates into 13 193 extra rooms occupied (63 per night) over the same period in 2010.

Several hotels reported their best July since 2000, at 70%+ occupancies, and in some cases, July was among the best three or four months ever experienced at these hotels.

Forecasts for August to November look promising for the destination, with even greater occupancies predicted according to the in system occupancies for these hotels. There are reports of 80%+ and perhaps even the possibility of a few at 90%+. In addition, average room rates and Revenue Per Available Room (Revpar) are rising in tandem.

The economic and downstream benefits of this arrival trend are obvious as international and regional tourists, along with Zimbabwean visitors, spend ever increasing amounts of disposable income on their holidays. All areas of tourism, which include hotels, transfers, activities, restaurants, national parks, curio sellers, fuel stations, supermarkets and suppliers of goods, should see an upswing in revenue as a result of these increased arrivals.

According to Ross Kennedy, CEO of Africa Albida, “Victoria Falls Safari Lodge had the best July occupancy in 10 years at 70%. The Boma Place of Eating had its second best July ever. Only July 2007 saw more covers per night at an average of 183, while 2011 had on average 163 per night.”

Ilala Lodge Hotel GM, Roddy Meiring, says: “The hotel saw a massive 87% occupancy in July 2011, which is up 15% on last year.”

GM of The Victoria Falls Hotel, Karl Snater, adds: “We have seen an increase in occupancies from 2010 for all months except March, with July showing a massive 21% increase in occupancy from last year.”

These statistics show that while many destinations in Southern Africa might be seeing a decline in visitors, Victoria Falls on the Zimbabwe side is on the up and once again being recognised as a world-class destination.

Source: Victoria Falls reports good occupancies (23/08/11)

Shearwater struggles for business

Shearwater Adventures, the leisure division of fast-food chain, Innscor International, is facing crippling viability problems because of reduced tourist arrivals.

The company is reportedly struggling to meet its financial obligations because of reduced earnings from tourism operations. Shearwater also faces a huge wage bill. The company is understood to be streamlining its activities to focus on those generating more income.

Innscor International managing director, Jeremy Brooke, confirmed that Shearwater had been seriously affected by the downturn in the tourism sector.

“The viability of Shearwater is under threat because there has been a huge decrease in the volume of foreign visitors,” said Brooke. He said the situation was impacting negatively on the company’s operations. “We are looking at ways to remain in business. We have had to discontinue the operations of the Balloon Company,” Brooke said. “Its contribution was insignificant compared to what we invested in the project.”

He also said Shearwater was shedding staff to reduce its unsustainable salary bill. “We are doing our best to keep most employees on the job but the whole sector is facing a downturn and it is impossible to retain everyone,” he said.

He said Shearwater had closed down most of its operations in Kariba and was mainly focusing on resuscitating the Victoria Falls operation. “Business in Kariba had become very low and we decided to dispose of it,” said Brooke.

He said the holding company was however investing in a food court in the town. “We are constructing a food court in line with our Exxomobile arrangement. We hope to have completed the project in the second quarter of 2005,” Brooke said. He said Innscor was now franchising its food outlets in the region because this was more profitable.

Brooke said franchising allowed customers to have more choice in quality brands. “It is not a new concept but it has become expensive to build food courts. We have realised that franchising them will open up the company’s market and at the same time allow our value brands to be available to all customers,” Brooke said.

He said due to the decrease in consumer disposable incomes, the business of running food outlets was declining. On the disposal of TV Sales and Hire, Brooke said they could not find a suitable partner to take up part of the shareholding. “We looked around and there was no suitable organisation which could buy TV Sales and Hire so we decided to discontinue the offer,” said Brooke. He said the company had no plans to dispose of TV Sales and Hire since it was recording a significant growth. “TV Sales has been growing significantly and we have no plans to dispose of it. It is amazing that the company’s cash sales are growing, showing that it is moving from credit to cash sales,” Brooke said.

Source: Shearwater struggles for business (30 July 2006)

Fast food giant says tourism is on its way to recovery

Tourism, once one of Zimbabwe’s highest foreign currency earners which was threatening to take over from tobacco, could be on its way to recovery following almost five years in the doldrums.

Fast food giant, Innscor Africa, whose adventure company Shearwater provides various forms of entertainment including bungee -jumping to tourists especially at the Victoria Falls, says arrival numbers to Shearwater increased by 32 percent during the year ending June compared to the previous year.

“The group is hopeful that Zimbabwe will regain its status as an attractive tourism destination and will see this operation once again contributing significantly to group results,” Innscor says in its annual report.

Available statistics show that though numbers are still down, at least earnings are going up. Zimbabwe earned US$201.6 million from tourism in 1999 but this plunged to a mere US$44.1 million in 2003.

Although the number of arrivals plunged from 613 030 in 2003 to 348 946 in 2004, tourism earned US$152 million in 2004. Preliminary figures for 2005 show that 452 328 tourists came to Zimbabwe in the first quarter.

Tourism to Zimbabwe has been on the decline since the government embarked on its controversial land reform programme in 2000. The programme has just been sealed with the passing of the Constitutional Amendment Act Number 17 that bars anyone from taking the government to court when it acquires land.

The European Union and the United States slapped Zimbabwe with what they termed “smart sanctions” and also issued travel warnings discouraging their citizens from visiting Zimbabwe which hosts the Victoria Falls, one of the seven wonders of the world.

Zimbabwe has initiated extensive promotion programmes including the “Come to Victoria Falls” video which was screened in South Africa and the Miss World Tourism pageant which it hosted. It is not yet clear whether the campaign has paid off or not.

Innscor Africa, which now has operations in 12 African countries including the continent’s most populous country Nigeria, says its overall sales grew by 278 percent from $574.6 billion to $2.2 trillion this year. Net profit more than trebled from $115.4 billion to $387 billion.
The group is divided into four operating divisions: agro-processing, manufacturing, distribution and retail.

The agro-processing sector which includes the country’s largest pork processor, Colcom, crocodile ranching firm Nilocitus and adventure company Shearwater, recorded a 592 percent growth largely because of Colcom’s results.

Colcom, which is also a listed company, saw its sales increase from $53.3 billion to $194.7 billion while net profit rocketed from $8.5 billion to $80.1 billion. The company’s financial year ended in December but it has now been realigned to June to fall in line with that of its parent company. Innscor has a 76.6 percent stake in Colcom.

There was a total take-off of 35 650 skins in its crocodile ranching. International prices for the skins continued to firm and there was a high demand for the company’s high quality grades.

The company had a carryover of 3 500 crocodiles and expects to cull 53 300 crocodiles this coming year with the eventual capacity reaching 60 000 crocodiles a year.

The manufacturing sector which includes, bakeries trading as Bakers Inn, fridge makers Capri, Iris Biscuits, Zapnax and National Foods recorded a 188 percent growth in sales with profit before tax shooting up by 318 percent.

The company says though there was improved efficiency and plant utilisation at the bakeries, profitability was affected by high input costs and price controls on bread.

There was exceptional volume growth at Capri and the company is now looking at manufacturing televisions for the local market.

Iris Biscuits and Zapnax both needed additional capacity to meet demand for their products. Management was pursuing opportunities to expand the snack business for both the local and regional markets.

National Foods faced a shortage of raw materials and price controls for its products but it still contributed satisfactorily to the group profit. Its massive underutlisied capacity, however, presented it
with a fantastic potential for future growth.

The distribution division had a sales growth of 283 percent while profit before tax increased by 266 percent. Innscor Distribution is now one of the leading distributors of both international and local brands. It has just acquired distributorship of biscuits, cough mixture and some Unilever products.
The distributorships in Zambia and Malawi continue to increase their market share and there is still potential for growth in the two countries.

Zimbabwe Photo Marketing continued to maintain its market share in both photographic consumer and health imaging products through the Kodak brand.

The Spar brand continued to expand. There are now 51 Spar stores and 17 Savemor stores. An additional 8 Spar stores and 48 Savemor stores will come on stream this year. The company is also pursuing Spar’s penetration into Zambia.

TV Sales and Hire had an exceptional year with real volume growth through its retail sales and wholesaling operation. It has reintroduced limited credit facilities because prices of most of its products have skyrocketed because of spiralling inflation.

Sales in the retail division, which mostly comprises the fast food outlets, were up by 304 percent but profit before tax increased by only 166 percent. The company says growth and profitability were subdued by two factors: lack of profitability in bread retailing due to price controls and above inflation increases in human resources and other costs.

It says, however, fast food stores and retail operations in Zimbabwe continued to enjoy customer loyalty despite declining disposable incomes.

Growth in the retail sector occurred mainly in the region with three new markets opening in Malawi, Senegal and one of Africa’s best potential markets, Nigeria.

The group had a total of 325 counters in 12 countries at the end of the year, with 264 being operated by Innscor and 61 being franchised.

Ratings company Wright Quality Rating says Innscor outshown its major competitors from South Africa- Spur and King Consolidated Holdings. Spur grew by 16 percent in 2004 while King Consolidated shrunk by 0.9 percent. Innscor grew by a staggering 401.1 percent.

Source: Fast food giant says tourism is on its way to recovery (undated, 15 Sept 2015)