News / Local
Zimbabwe govt terminates CSC deal
16 Aug 2024 at 13:27hrs | Views
The Zimbabwean government has terminated a US$130 million joint venture (JV) agreement with British investor Boustead Beef, which was intended to revive the Cold Storage Company (CSC). This decision comes five years after the agreement was signed, following concerns about Boustead Beef's failure to meet its contractual obligations.
The JV, which began in 2019, aimed to rejuvenate CSC, once a leading meat processor in the region, but little progress was made. Boustead Beef was supposed to invest US$130 million, with US$45 million in the first year, but only US$24 million was reportedly injected by 2022. The CSC remained in disrepair despite these efforts.
The agreement allowed CSC to terminate the deal if Boustead Beef failed to provide proof of funding within four months of signing. The government confirmed the cancellation of the agreement in a letter and a Supreme Court filing on August 2, 2024.
The termination has raised concerns about CSC's future, with the company still facing significant debts and operational challenges. The government, through the Mutapa Investment Fund, expressed a need to review the JV due to its failure to deliver on expectations.
The JV, which began in 2019, aimed to rejuvenate CSC, once a leading meat processor in the region, but little progress was made. Boustead Beef was supposed to invest US$130 million, with US$45 million in the first year, but only US$24 million was reportedly injected by 2022. The CSC remained in disrepair despite these efforts.
The agreement allowed CSC to terminate the deal if Boustead Beef failed to provide proof of funding within four months of signing. The government confirmed the cancellation of the agreement in a letter and a Supreme Court filing on August 2, 2024.
The termination has raised concerns about CSC's future, with the company still facing significant debts and operational challenges. The government, through the Mutapa Investment Fund, expressed a need to review the JV due to its failure to deliver on expectations.
Source - the independent
