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THE Industrial Development Corporation is still hunting for an investor to take over its 49 percent shareholding in Zimbabwe Grain Bag (ZGB), a Bulawayo-based manufacturing firm. ZGB was formed in 1986 as a joint venture between the Treger Group of Companies and the IDC with the mandate to satisfy the country’s annual demand for grain bags, which previously were wholly imported.
The Grain Marketing Board was the sole distributor of the grain bags.
IDC group chief executive officer Mr Mike Ndudzo told New Ziana ZGB was yet to find a suitor.
The firm, he said, was operating at low capacity due to financial challenges.
“Yes, we are still looking at disposing our stake but the problem is getting people with cash,” he said.
“We have held several discussions with potential buyers, we have done due diligence after due diligence but when you come to the cash aspect, it becomes another story. But yes that option is still open.”
The IDC wants to dispose of its ZGB stake for at least $1,6 million.
The firm has grown over the years and diversified its product range to meet changing market requirements across the country.
The company now covers agriculture, mining, industrial and export sectors of the economy. Its product range includes bags for grain, fertiliser, cement, stock feed, maize meal, minerals, sugar, fresh produce, woven cloth and bulk bags. – New Ziana
Online Reporter