adminIndonesian firm, pulled out
The company is involved in the breeding of ostriches and the manufacture of leather products.
It cited “financial constraints” for its withdrawal.
Under the deal, Ostrindo wanted to lease the CSC Bulawayo facilities and also use its cattle ranches in Matabeleland.
CSC is among parastatals listed for restructuring last year.
Others include Air Zimbabwe, Agribank, the Civil Aviation Authority of Zimbabwe, National Railways of Zimbabwe and Grain Marketing Board.
“The restructuring initiative to lease CSC Bulawayo abattoirs and ranches had been approved by Government in 2010,” said Minister of State Enterprises and Parastatals Mr Gorden Moyo.
“However, the investor withdrew at the conclusion of the deal due to some problems emanating from the investor’s finances. CSC was tasked to bring a fresh restructuring proposal for consideration by the Government.”
CSC, which used to keep between 20 000 and 25 000 beasts at any given time in the late 90s, is on the verge of collapse and has largely survived on service slaughter. The situation has become difficult to such an extent sometimes it goes for weeks with no activity at its abattoirs.
Its viability suffered a major setback when the European Union suspended beef imports from Zimbabwe following the outbreak of foot-and-mouth disease.
CSC had an annual quota to the region of 9 100 tonnes of beef. It also had a US$15 million revolving payment facility with the EU under which it was paid in advance.
The facility was discontinued after the EU suspended beef imports in 2001.
CSC, whose future is uncertain in light of competition from private players now controlling 90 percent of the market, used to earn the country US$45 million per year since it managed to meet its EU quota.
If capacitated, it could earn up to US$70 million annually.
Online Reporter