The Minister of Parastatals and State Enterprises, Gorden Moyo said the Inter-Ministerial Committee on Commercialisation and Privatisation of Parastatals and Cabinet were working on the problem.
The company’s chief executive officer, Ngoni Chinogaramombe, recently told the press that the country’s once leading meat processor was “on its knees”, reeling under huge local and foreign debts believed to be running into millions of dollars. The company is on the verge of collapse and now largely survives on service slaughter, rentals from tenants using its industrial premises and farmers leasing its feedlots and ranches.
“The restructuring initiative to lease CSC Bulawayo Abattoir and ranges had been approved by Government in 2010. However, the investor withdrew at the conclusion of the deal due to some problems emanating from their finances.
“CSC was tasked to bring fresh restructuring proposal for consideration by the IMCCPP. A memorandum is currently being prepared for consideration. This will take into account the current status, challenges, the restructuring options and the accompanying cash flows and business plans,” said Moyo.
The viability of the company suffered a major setback when the European Union suspended beef imports from Zimbabwe in 2001 following an outbreak of foot and mouth disease. CSC had an annual quota to EU of 9 100 tonnes of beef. It also had $15 million revolving payment facility with EU under which it was paid in advance. The company used to earn the country at least $45 million per year. If capacitated, it can earn up to $70 million annually.
Post published in: Business