admin
The National Social Security Authority (NSSA) says it has advanced about $5,3 million to Star Africa Corporation for the firm to acquire new sugar processing equipment. Star Africa, the country’s only sugar refinery, has been facing financial and operational challenges over the past couple of years due to old and inefficient equipment.
NSSA general manager Mr James Matiza told the Parliamentary Portfolio Committee on Public Service, Labour and Social Welfare that before it agreed to put in the investment, the authority demanded changes in the board and management at Star Africa. Mr Matiza said the process of assembling the machine was in progress.
“NSSA has a 24 percent stake in Star Africa. The machine Star Africa was using to process sugar was very old and the sugar would not be of the quality that would be purchased by Delta because Delta is a very large consumer of sugar when they make beverages but they were saying the sugar coming from Star Africa is of low grade,” he said.
“So they requested for assistance from NSSA. So we structured a deal where NSSA gave up $5,3 million to acquire a machine which will be owned by NSSA because of this $5 million. They are assembling the components of the machine that are coming just now.”
He said the investment into Star Africa was a viable one.
“I had a meeting with the CEO (of Star Africa) on Thursday last week, when this machine is ready and running the machine will produce first grade sugar and they have already got contracts from Delta and everybody,” he said.
Apart from taking measures to ease the liquidity crunch on the economy, NSSA is a major investor on the Zimbabwe Stock Exchange.
It has shareholding in over 60 companies. The parastatal has investments in CBZ Bank, Rainbow Tourism Group and retail group OK Zimbabwe.
Other investments are in the money market, real estate and housing — New Ziana.
Online Reporter