Ingwebu breweries still in the red

BULAWAYO The beleaguered Ingwebu Breweries is reportedly still in the red and is failing to reopen the beerhalls that
were shut down last year.

Responding to written questions the chairman of the board of the Bulawayo Municipal commercial undertaking, which administers the brewery and council farms, Dumisani Sibanda, said the beer halls would remain closed until further notice.
These outlets that were closed in 2010 due to reduced purchasing power still remain closed, said Sibanda.
He also noted that the state of the council farms had not changed due to the shortage of irrigation water, pastures and crops. The state of farms has not changed from last year with shortage of irrigation water for pastures and crops still being a major constraint, he said.
The BMCU-run brewery was last year dogged by a number of problems with 16 of the council beer halls closed for allegedly incurring losses, while cattle at its Aiselby Farm disappeared in unclear circumstances. Irked by the closure of the beer halls BCC reacted by replacing the entire board.
Sources close to the proceedings have, however, revealed that councillors are fast losing patience with the current board led by Sibanda. The brewery is still incurring losses, with reports of corruption among the staff. Councillors are fast losing patience with this board as they keep on Coming up with recommendations for a possible turnaround, but there is nothing tangible to talk about. At one point there were reports of corruption within the procurement section. There is now that general feeling that the brewery is dying a slow but sure death, said the source.
But Sibanda noted that his board was striving to address the problem of limited packaged beer capacity that had constrained effective market execution and growth. I am pleased to report that the brewery packaging capacity
constraints have been addressed, we are consolidating the existing market with market expansion coming through in a few months time, he said.
Deputy Mayor, Councillor Amen Mpofu, said: While this board is telling us that there is some progress taking place it is really puzzling that these people are failing to open at least one of the closed beer halls. Brewing is definitely taking place. What is the problem? You dont need capital to reopen those beer halls as the infrastructure is there, said Mpofu. There was a dangerthat the people of Bulawayo would soon rise up in protest against the council as a whole, he added.

Post published in: Economy

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