adminHowever, even though there are challenges on the economic front, which are exaggerated since they cannot match the crisis in Europe, it is quite gratifying that the country is forging ahead with its programme to resuscitate its industry with the help of our neighbours.
Funding constraints that local industry faces due to economic sanctions slapped on the country are well documented but they have not dampened local initiative and innovation. Chronicle yesterday carried an article on the Cold Storage Company that appears to have turned a corner, thanks to support from Government in partnership with the Government of Botswana. The Government-owned entity was struggling only last year with its giant facilities lying idle due to lack of capital.
The cattle slaughter deal whereby cattle from Botswana are being brought to CSC for slaughter since last year has breathed life into the parastatal, which is now eyeing regional exports.
This is taking place amid negative sentiment by some industrialists who have been waiting for funding under the Distressed Industries and Marginalised Areas Fund. The CSC story shows the potential that lies untapped in our industries due to a lack of access to finance.
“Our exports will be as a result of the breeding and slaughter programme whereby CSC is buying cattle from local farmers.
“In April this year, we will be resuming beef exports in the region,” said CSC chief executive Mr Ngoni Chinogaramombe.
The company has plans to penetrate Angola, Mozambique, the Democratic Republic of Congo and Malawi. We understand that the company aims to supply 50 tonnes of beef a month to these markets once the exports resume.
We would like to applaud the CSC turnaround model whereby proceeds from the Botswana deal were used to restock through buying cattle from local farmers up to a point that now the firm feels it could start exporting beef to the region.
The CSC, which used to supply 9 100 tonnes of beef to the EU yearly in the 1990s, could soon command a reasonable share of the regional market if more support is given and the company focuses on its core competence in order to fully utilise its infrastructure across the country.
Our plea goes out to veterinary authorities to ensure that foot-and-mouth disease is kept at bay through strict control of movement of cattle from red zones such as Binga in Matabeleland North.
It is only through the combined efforts of the inspectorate, the farmers and the CSC that we can restore the competitiveness of cattle ranching in this country and at the same time provide a viable business model through lessons learnt from the CSC’s turnaround plan.
If anyone was still in doubt regarding the potential of the dormant local industry, the resuscitation of the CSC, whose epitaph was being written only a few months ago, will remove all doubt while spurring the Government on in its bid to ensure distressed firms get funding to contribute meaningfully to economic growth.
Online Reporter