Growing informal sector riles CFI Holdings

📅 Published: August 21, 2025

📰 Source: newzimbabwe

Curated by AllZimNews.com

Presenting a trading update for the third quarter ended June 30 2025, CFI Holdings said they were feeling the heat exerted by the shadowy economy. “Notwithstanding the economic positives, major businesses continued to grapple with the growing influence of informal retailers, who operate outside the compliance with statutory obligations, lowering their costs of doing business. “These largely unregulated competitors created additional pressure on margins and customer retention.

Management is hopeful the Authorities will continue to intervene in this matter to promote fair competition in the operating environment,” said the company.

During the period, Farm & City Centre (FCC) sales volumes increased by 9% compared to the comparative period prior year on the back of the agro sectors’ rebound following the prior year’s drought.

Notwithstanding increased competition, the entity continued to enjoy the fruits of mutually beneficial relations with its suppliers for key revenue drivers, which have continued to guarantee the business’s stability.

The entity continues to implement enhanced product diversification strategies.

In the same reporting period, Agrifoods’ sales volumes increased by 13. 9% during the quarter against a comparative prior year period, attributable to improved aggregate demand for its products.

Management remains focused on growing Agrifoods’ market share notwithstanding increased competition in the feed sector.

The business remains responsive to evolving market dynamics and customer needs, with focused engagement and adaptive strategies deployed across operations.

During the quarter, Victoria Foods’ sales volumes declined by 3% compared to the same period the prior year, influenced by grain shortages caused by the drought from the prior year and the late start of the maize harvest. “Going forward, the Group anticipates the FY2025 economic outturn to remain challenging, influenced by liquidity constraints and reduced aggregate demand.

Ongoing cost containment measures will continue to be implemented,” added CFI. 🔗

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