Pakistani millers wreck havoc

Local grain milling companies are crying foul over the invasion of stipulated reserved sectors by foreign nationals.

Speaking on the sidelines of an engagement with the Grain Millers Association of Zimbabwe, small millers from Bulawayo said the milling sector reserved for locals under the law is now being invaded by foreigners, particularly Pakistanis.

One local miller, James Kamono who owns Marula Milling company, said the foreigners were trading mealie meals at questionable prices.

The Indigenisation and Economic Empowerment Act in Zimbabwe reserves certain sectors, including grain milling, for ownership by Zimbabwean citizens. This means that, in principle, only businesses owned by locals are permitted to operate in these sectors.

"One of the challenges we are having as small millers is the invasion of this reserved sector by foreign nationals," Kamono said. "These foreign nationals, particularly the Pakistanis, are selling mealie meals at low questionable prices. This has lowered our production and sales," he lamented.

 Kamono called on the Government to put stiffer policies and penalties to safeguard the reserved sector for locals.

"We spoke about indigenisation and the reserved sector, but I think we need to push more on that issue of indigenisation and the reserved sector because we have so many foreigners opening their milling companies and that is affecting our operations," he added. Another Southern Region milling company owner, Mthandazo Moyo, owner of Shakata Investments, said the invasion of the sector by the Pakistanis was worsening the burden of the already struggling milling businesses.

"The big problem that we are facing is financial muscle. As small miller we do not have the capital to buy many tonnes of maize and the situation is worsened by foreigners who are taking over the sectors reserved for locals," said Moyo. Meanwhile, milling companies welcomed the efforts by Grain Millers Association of Zimbabwe (GMAZ), which is set to facilitate the movement of maize from the Northern to the Southern Region of the country as part of Government efforts to ensure food security. Speaking on the sidelines of a meeting, GMAZ Southern Region Vice Chair, Mthokozizi Sibanda said movement of maize will permit farmers to access more markets while allowing small millers to access raw materials at a better cost.

 "We want to appreciate the Government in ensuring there is food security in the Southern Region. As we speak right now most millers are seized with buying local maize as you know for the past few years we have been importing from abroad and currently we have been asked by the Government to assist our local farmers in selling and exploring the local market," Sibanda said. He added that localtrade will allow a quick turnover in the movement of maize. "Most millers are seized with that opportunity and we want to appreciate that because that comes in handy. "Local purchases of grain are key over the turnover of the movement of maize we want to bring it from the northern Region into the Southern Region which might take a day or so which is an advantage and is key to our milling plants as we bring that necessary raw material," said the GMAZ vice Chairperson.

According to Sibanda, the movement of maize from the Northern Region will allow the country to fully utilize the local milling capacity. "Not only that, the export of labour has stopped particularly over our milling plants. We are now buying locally, promoting the local farmers and improving our capacity utilization of our milling plants. "This is key in our industrial development, national development as well