Online Reporter
Martin Kadzere
The National Social Security Authority (NSSA) is set to acquire a 35 percent stake in Silo Food Industries in a move expected to inject fresh capital into the food processor and boost its operational capacity.
The acquisition will pave the way for a major recapitalisation of Silo, allowing it to retool and upgrade its milling plant, NSSA general manager Dr Charles Shava said.
“Taking a 35 percent equity stake in Silo Food Industries will provide the capital required for recapitalisation and operational expansion, ensuring the enterprise reaches commercial viability while generating long-term returns for our pensioners,” Dr Shava said.
The transaction comes as Silo seeks to strengthen its balance sheet and lower manufacturing costs to supply affordable products to the market.
Silo was established in July 2018 following the unbundling of the Grain Marketing Board (GMB).
The company was formed to take over the GMB’s commercial processing and retail operations, focusing on the processing and distribution of food products and stock feeds.
Silo’s product portfolio includes mealie meal, flour, rice, traditional grains, coffee and animal feeds under the Country Feeds brand.
The entity is 100 percent owned by the Mutapa Investment Fund — Zimbabwe’s sovereign wealth fund.
The capital injection from NSSA will support Mutapa’s broader directive to turn around State-owned enterprises into self-sustaining, profitable entities.
