Chamwe Kaira
Zeda Limited expects a recovery in Namibia during the second half of its financial year, which it believes will help improve the performance of its wider African portfolio.
The company anticipates that momentum in its leasing business, including public sector contracts, will continue, bolstered by a recovery in Namibia.
“Performance recovery in Namibia, which is expected to result in a resurgence of the portfolio,” the company said in its interim results for the six months ended 31 March 2026.
Zeda holds the licence for the Avis brand in South Africa and 10 other countries in Sub-Saharan Africa.
The company reported that Namibia and Mozambique remained under pressure during the reporting period, contributing to a 2.1% decline in its Greater Africa portfolio.
Despite the decline, the Greater Africa division remained an important contributor to the group’s leasing business. The division accounted for 21.3% of total leasing revenue, compared to 23.4% during the same period last year.
Zeda said other African markets delivered stronger results, with Ghana, Zambia and Lesotho recording double-digit growth.
Group revenue increased by 3.2% to R5.54 billion during the six-month period.
The growth was supported by the leasing and vehicle sales businesses. Leasing revenue increased by 7.5%, while vehicle sales volumes rose by 12.9% compared to the previous year.
The company said weaker performance in its car rental business reduced some of those gains.
According to Zeda, the car rental market remains highly price-sensitive. The company has introduced strategies to expand its subscription offering and attract more customers.
It also plans to strengthen existing partnerships and introduce new partners in the leisure market.
Headline earnings per share increased by 6.1% to 201 cents, while basic earnings per share rose by 6.2%.
Finance costs declined by 8.9% year-on-year. The company attributed the reduction to lower interest rates, diversified funding strategies and its off-balance-sheet funding model.
Zeda also recorded a R31 million release in expected credit loss provisions, which it linked to improved debt collections and lower damage-related costs.
Net debt declined to R6.24 billion from R6.38 billion a year earlier, despite a 3.1% increase in the size of its rental fleet.
The board declared an interim dividend of 80 cents per share, representing a 40% payout of net profit after tax.
