GMB unbundles operations

GMB unbundled after it cleared its accounts, dating back to 2008 and realigned its board of directors with the corporate governance framework.
Chief executive officer Mr Albert Mandizha said GMB had maintained its grain strategic unit as part of the company’s social responsibility of providing food security.
“We carried out a review of the company’s operations and came up with five strategic units as we move towards commercialisation, plus the strategic grain reserve,” said Mr Mandizha.
He added that some of the units were already operational while others are yet to receive private funding to be fully operational.
Under the new structure, GMB would be operating the Agro Processing Unit responsible for stockfeeds.
Mr Mandizha said in this project they were looking at joint ventures to complete the GMB’s US$20 million stock- feeds plant in Norton.
“We have sunk about US$15 million into the profitable project and we need an additional US$5 million to complete it,” he said.
Other units include Logistics, where the GMB will invest in a fleet of lorries, a trading unit, farmer support services and grain bag manufacturing, which is already running and looking for investors.
GMB will establish five centres countrywide to be supported by all strategic units.
The Farmer Support Services is still in its infancy as the GMB is still scouting for agronomists to run the unit.
Government had earlier taken the critical step towards the privatisation of the institution by liberalising grain marketing and policing in favour of the establishment of a commodity exchange.
Prior to liberalisation last year, GMB had legal monopoly over trade in strategic grains such as maize and wheat, the country’s leading staple grains.
The GMB is among the top 10 parastatals earmarked for privatisation. Others are Agribank, Air Zimbabwe, Cold Storage Company, the National Oil Company of Zimbabwe, National Railways of Zimbabwe, NetOne, TelOne, Zesa and Ziscosteel.
Noczim has since unbundled into two units, injecting efficiency in the national fuel procurement system and to attract investors to the oil industry.
Under the new structure, one entity would be responsible for national fuel depots and infrastructure, and the major task would be to manage the importation of petroleum products.
The second firm would be in full-time fuel retailing. Several players in the oil sector have been calling for an overhaul of Noczim to transform it into a regulatory body overseeing the petroleum industry, instead of maintaining its dual role of importing and distributing fuel.