Cold Storage Company struggles to survive

The Cold Storage Company is clinging to one abattoir and 700 cattle as it struggles to remain afloat, though it is understood a turnaround plan has been placed before Cabinet.

Sunday Mail reported that the parastatal's fortunes have been blighted by allegations of mismanagement, corruption and heightened competition from private abattoirs.

Over the years, CSC has been involved in negotiations with potential suitors willing to operationalise its depots in Masvingo, Kadoma, Marondera and Chinhoyi, but analysts say the US$22 million debt overhang has been a major put-off for investors.

In all, it is estimated that more than US$80 million is needed to bring the company back to its feet.

Agriculture, Mechanisation and Irrigation Development Deputy Minister (Livestock Production) Paddy Zhanda last week said Government was confident that CSC could be resuscitated.

He, however, noted that there had been no major capital injection from Government since dollarisation of the economy in 2009.

"We are waiting for Cabinet approval and I am sure you know how Cabinet works. We cannot talk of investors now when we have not even injected any capital ourselves into the company. An investor cannot come and put money into a company without any structural plan, but we will make sure it will be resuscitated and ensure it is viable," said Deputy Minister Zhanda.

The 77-year-old business used to play a central role in processing and marketing of Zimbabwe's beef, handling some 500 000 beasts yearly.

CSC boss Mr Ngoni Chinogaramombe said last week the parastatal was operating one abattoir in Bulawayo and leasing out 9 200 livestock units.

"We are still waiting to be guided by the Government when they find the investors.

"We gave them our turnaround strategy which they are using to scout for the investor. We are really struggling," said Mr Chinogaramombe.

He said they had just 700 cattle left, down from 10 000 at the turn of the millennium.