Powermec generator sales doubles due to electricity shortages

HARARE- Powermec has reported that generator sales volumes in the first 6 months of the year doubled driven by the ongoing electricity sales. Powermec is a subsidiary of Zimplow, a ZSE listed manufacturer and distributor of farming implements.

Zimplow makes farm equipment such as plows, harrows, planters, cultivators, hoes, shovels etc. The company is a specialist in animal traction technology and its main equipment brand is the Mealie Brand.

Zimbabwe has been grappling with power challenges since the beginning of the year and the situation has intensified in recent months. Electricity outages now run for at least 16 hours a day due to low production and import cuts.

Powermec, which has capitalised on the shortfall, is the authorised distributer of Perkins parts and service in Zimbabwe. The scope of Powermec’s service covers the electric power engines (generators), tractors, trucks and earth moving equipment driven by Perkins engines.

Over the 6 months, generator sales volumes went up to 44 units up from 22 in the same period in 2018. Likewise engine and generator services hours significantly increased to 1462 hours a 22% growth.

Consequently the unit’s revenue soared by 235% to 3.4 million ahead of last year. Powermec said demand remains very strong and there are ongoing efforst to ensure sufficient stocks are held.

Meanwhile, at a post cabinted media briefing in Harare on Tuesday, the Minister of Information Monica Mutsvangwa told media that ZESA together some industry players has secured power imports, circa 200 mwh per day, to help ease the power challenges.

She also said a local bank has provided a $15 million guarantee for additional ring fenced power imports.

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Respect Gwenzi

Respect is the Lead Analyst and Managing Director at Equity Axis. He has 8 years experience in respective fields of finance and media. Particular areas of expertise include Asset Management, Stockbroking and Financial Media. Respect is on a mission to change the course of Financial Media in Africa through digitalization

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