• Willdale faced a 52% extrusion decline and 45% revenue drop in Q3 2025, echoing Beta Bricks’ working capital and production challenges
• WestProp Holdings’ US$1 million brick manufacturing facility intensifies competition with its modern technology and sustainable focus
• Willdale’s strategy to fund a modern brick plant is critical but faces risks

Harare- Willdale Limited, Zimbabwe’s only listed brick manufacturer, is grappling with significant challenges in its core brick-making business while pinning its hopes on a property investment strategy to drive a performance turnaround.

The company has faced persistent setbacks, including a shortage of working capital that has severely impacted its ability to meet production and sales targets. In its third quarter ending June 2025, Willdale reported a year-to-date extrusion decline of 52% and a 41% drop in fired production compared to the previous year, leading to a 34% decrease in sales volumes.

This reduction in output translated into a 45% revenue decline, despite a 10% increase in average prices driven by a strategic focus on high-value product lines.

While the premium brick segment has provided some cushion against competitive pressures in the common brick market, the company’s operational constraints highlight the urgency of its pivot to property investments as a means to bolster liquidity and modernize its production capabilities.

The feasibility of Willdale’s turnaround strategy hinges on its ability to leverage property investments to address its liquidity crisis and operational inefficiencies. The company is banking on real estate and land development to generate significant cash flows, which will be channeled into working capital and the acquisition of a modern, all-weather brick production plant.

A key milestone was achieved in May 2025, when one of Willdale’s identified land parcels received a development permit, paving the way for the servicing and sale of high-demand residential and commercial stands.

However, progress has been hampered by the ongoing issue of illegal occupants on the land, which could delay the realization of these sales.

Additionally, Willdale’s Smartsuburb project in Mt Hampden, located within the boundary of the New City, is set to commence servicing and sales in September 2025. These initiatives are expected to yield strong returns, but their success depends on timely execution, market demand for stands.

The entry of WestProp Holdings into the brick manufacturing sector introduces a new competitive dynamic that could further pressure Willdale’s market position.

WestProp, a prominent real estate developer, has acquired a US$1 million brick manufacturing facility in South Africa which is already operational, with the capacity to produce tens of millions of bricks annually for its ambitious “one billion bricks by 2050” strategy.

This move allows WestProp to vertically integrate its operations, supplying bricks for its extensive property developments, including Millennium Heights, Pomona City, and The Mall of Zimbabwe.

Unlike Willdale, which is struggling with undercapitalization and outdated production technology, WestProp’s modern facility and substantial financial backing position it as a formidable competitor.

This development could erode Willdale’s market share, particularly in the premium brick segment, where demand for high-quality, sustainable materials is growing. WestProp’s focus on sustainable development practices and its ability to fund large-scale projects may also appeal to environmentally conscious developers, further intensifying competition.

Globally, the brick industry is undergoing a transformation driven by sustainability and technological advancements, which could inform Willdale’s strategic choices. The global bricks market, valued at USD 571.57 billion in 2024, is projected to grow at a 4.8% CAGR to reach USD 758.62 billion by 2030, fueled by rapid urbanization and infrastructure development, particularly in Asia-Pacific and Africa.

However, the industry faces challenges such as high raw material costs, environmental concerns related to traditional kilns, and competition from alternative materials like precast concrete and steel.

Innovations like fly ash bricks, which reduce environmental impact and utilize industrial waste, are gaining traction, as seen in studies of Zimbabwe’s ABC (Pvt) Ltd, where substituting clay with fly ash lowered environmental loads. Willdale could explore similar innovations to enhance efficiency and meet the growing demand for eco-friendly materials, but its current financial constraints limit its ability to invest in such technologies without successful property sales.

Beta Bricks, another player in Zimbabwe’s brick industry, also faces significant challenges that mirror Willdale’s struggles, reflecting the broader difficulties within the sector. Like Willdale, Beta Bricks has been hampered by working capital shortages and operational inefficiencies, leading to inconsistent production and sales. The company has similarly turned to property investments to stabilise its finances, betting on land development to generate revenue.

The property sector, while promising, is not without risks. Demand for residential and commercial stands in Zimbabwe is strong due to urbanisation, but bureaucratic hurdles, such as delays in land permitting and issues with illegal occupants, as seen with Willdale, could also affect Beta Bricks. Moreover, the sector’s growth potential is tempered by policy inconsistencies and corruption, which deter foreign investment and complicate project execution.

The property sector in Zimbabwe, on which both Willdale and Beta Bricks are betting, offers significant opportunities but also substantial risks. Zimbabwe’s urban population is growing, driving demand for housing and commercial spaces.

 The government’s “open for business” policy and the establishment of the Zimbabwe Investment and Development Agency (ZIDA) aim to attract foreign direct investment, but implementation has been slow, and issues like weak property rights protection persist.

WestProp’s success in developing premium lifestyle communities, such as Pomona City and Millennium Heights, demonstrates the potential for high returns in real estate, but its scale and financial resources give it a competitive edge over smaller players like Willdale and Beta Bricks.

Therefore, Willdale’s property investment plan could provide the necessary liquidity to modernize its brick production and improve competitiveness, but execution risks, including delays in land development and competition from WestProp, pose significant hurdles. The global bricks market offers opportunities for growth through sustainable innovations.

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