ZECO Holdings focuses on the real estate market

By Alois Vinga

LISTED steel fabrication and installation company, Zeco Holdings Limited, has updated shareholders on the recent shift in strategic focus, which has seen the company shift its focus towards residential and commercial property development.

The company was incorporated in Zimbabwe by the Registrar of Companies under the Companies Act on November 19, 2007 under registration number 30287/2007 to consolidate the ownership of Delward and Crittall-Hope.

Delward is the core business of Zeco Holdings Limited and was involved in the manufacture and rehabilitation of rolling stock as its core business, while Critall – Hope was involved in the manufacture of products required in the construction industry such as frames doors and windows, rolling shutters. doors and fittings.

The demand for rolling stock products in Zimbabwe has been mainly driven by the National Railways of Zimbabwe (NRZ) and the mining sector.

However, the uncertainties surrounding the rail transport industry over the years and the closure of many mines, as well as the informalization of the mining sector have damaged the company’s prospects as a rolling stock company, shareholders of the company having gone for years without benefiting from any capital appreciation or the payment of a dividend.

In a notice to shareholders, Zeco Holdings non-executive chairman, engineer Benjamin Rafemoyo, said the latest move was inspired by a desire to change the company’s strategic direction.

To this end, the company disposed of rolling stock assets for US$4.5 million and also purchased a residential land of 36,395 square meters with all developments in Harare for a price of US$2.15 million. US dollars.

“In order to unlock value for shareholders, the Board of Directors has decided to change the strategic direction of ZECO Holdings Limited from a rolling stock company to a residential and commercial real estate investment and development company.

“The purpose of this circular is to provide shareholders with relevant information regarding the change in strategic direction, including the background and rationale for the change in strategic direction, and to seek shareholder ratification of the change in strategic direction. at the next Extraordinary General Meeting,” ZECO said.