Business Reporter
Mutapa Investment Fund (MIF) chief executive John Mangudya is set to meet with creditors of the Cold Storage Company (CSC) to explore solutions following the collapse of a US$130 million joint venture with British investor Boustead Beef.
The government terminated the agreement, signed five years ago, after Boustead failed to meet contractual obligations.
Key CSC creditors include the Zesa Holdings, the National Social Security Authority, and urban councils in Bulawayo, Harare, and Chinhoyi.
“We are going to have a meeting with creditors, and also with the business practitioner, so that we do things in accordance with the laws of the country,” Mangudya told businessdigest in an interview.
“Which means we are talking to the creditors, talking to the business practitioner, and after that, we will engage in a meeting with the creditors and settle with the creditors.
“Then we will look at the possibility, or the possible solutions of resuscitating the CSC.”
MIF’s ambition for CSC is to create a profitable entity that spurs economic growth and job creation.
“We want Mutapa to transform all the companies under it, so that they become commercially viable, produce value and wealth for the people of Zimbabwe, and that we secure employment,” Mangudya said.
He said CSC’s future is tied to supporting the agricultural sector and the livelihoods of farmers who are central to its operations.
“But, as you know that the CSC is a sustainable entity, it’s supposed to be a business,” Mangudya said.
“It is supposed to assist the economy by assisting the farmers, and the farmers are always going to be there. So, it is a sustainable business model that we want to put into the CSC.”
The company has substantial assets, including vast tracts of land and critical infrastructure, such as abattoirs.
“The major issue is that we have plenty of land in the CSC, and we have abattoirs in Bulawayo, Chinhoyi, Marondera, and all those need to be resuscitated so that the economy expands,” Mangudya explained.
“(We want) the farmers to still sell their cattle to the CSC, and by doing so, you are revamping agriculture, you are providing employment to people in Zimbabwe.”
Some of CSC’s key assets include Maphaneni Ranch, Dubane Ranch, Darwendale Ranch, Umguza Chomfukwe Dubane, Umzingwane-Railway Block, Gwanda Ranch, Chivumburu, Mushandike Ranch (Meyers Rust), Zeederberg Belwigwe, and Willsgrove Feedlot.
By restoring CSC’s operational capacity, Mangudya believes the company can play a pivotal role in strengthening Zimbabwe’s agricultural sector and supporting employment.
-AMH
