adminMr Mutizwa is a renowned business executive with an excellent track record in corporate management having been at the helm of Delta for 10 years to May 2012.
His wealth of experience should come in handy for sugar processor starafrica, which has been battling to raise funding to recapitalise operations.
A demonstration of Mr Mutizwa’s astute business acumen has been the successive profits Delta achieved before and after dollarisation of the economy.
He has also presided over Delta’s multimillion-dollar recapitalisation.
These experiences augur well for starafrica, which requires about US$22 million to retire expensive debt, replace antiquated equipment and the critical liquidity required to boost production among other obligations.
And the wealth of experience from Mr Mutizwa, who sits on the boards of several other listed and unlisted companies, should provide the critical skills needed to find the right matrix to ensure starafrica returns to profitability.
Mr Mutizwa is the chairman of beverage maker Afdis and sits on the boards of Bevking Horticulture, Dandemutande Communications, JSM Capital, JSM Strategic Pathways, MegaPak and Southern Trust Holdings.
He also serves on the boards of directors of information communication technology services provider Afrosoft and gold mining firm Bilboes.
The former Delta CEO leadership skills should be able to guide the firm in its quest to raise the US$10 million remaining from the group’s targeted capital.
Starafrica has struggled to achieve profitability since dollarisation and has turned to disposal of some of its assets, underperforming businesses and non-core operations in an attempt to raise the requisite fresh capital. As at September 30, 2011, starafrica had US$20 million current liabilities and posted a US$2,5 million total comprehensive loss for the half-year.
The restructuring exercise targeted disposal of assets including its head offices, WestBev, Marathon Tyres, Red Star Wholesalers and Arthur Garden Engineering.
Starafrica is keen on retaining its core operations that include sugar refiner Gold Star, Country Choice (castor sugar, icing sugar and syrups manufacturer) and transport and logistics Blue Star and Silver Properties.
The Zimbabwe Stock Exchange-listed firm is still bidding for its first group profits since dollarisation after being constrained by capital, debt and thinner margins.
Such poor performance saw the group’s share price plunge 85,7 percent to US1c between January and June 2011, losing US$8 million of its 2011 opening value.
Starafrica’s challenges in raising capital reflect the effect tight liquidity has had on most local companies, which in many instances forced many businesses to go out of their way and borrow from banks at punitive rates.
Online Reporter