Sanctions bite IDC subsidiaries

Industrial Development Corporation subsidiaries Zimbabwe Phosphates and the Zimbabwe Fertiliser Company have had over $3,5 million intercepted because of the US sanctions imposed on the country.

The amount has been intercepted over a period of time.

Minister of Industry and Commerce Mike Bimha said that the amounts held include money the companies were receiving from exports.

Zimphos chief executive Tapiwa Mashingaidze said Chemplex Corporation has had $2,4 million intercepted over time as parent IDC is a listed entity under the Zimbabwe Democracy and Economic Recovery Act.

Both Zimphos and ZFC are currently undercapitalised. Zimphos traditionally supplies 85 percent of national demand with a capacity of 250 000 tonnes of phosphates.

Last year, the phosphates plant operated at 8 percent capacity while the aluminium sulphate plant operated at 30 percent.

As part of an in-house turnaround plan, Zimphos will leverage on gypsum, magnetite (Dorowa) and good credit management systems while ZFC Limited will invest $8 million in the next five years towards refurbishments and upgrading of plant equipment as the company steps up efforts to meet local fertiliser demand.