admin
Martin Kadzere
The Industrial Development Corporation of Zimbabwe (IDCZ), has short-listed two local firms interested in buying shareholding in Deven Engineering — a local builder of trucks and buses, Business Weekly can reveal.
Sources familiar with the evaluation of the bids told Business Weekly that Faramatsi, an investment vehicle linked to Doves Funeral Assurance and Glenwood Investments, have been selected to acquire IDCZ’s 74 shareholding.
Deven’s core competence is trucks and bus body manufacturing done on rolling chassis or from knocked down kits. It can build trailers, tankers and specialised vehicle bodies such as compactors, dumpers, tippers, refuse trucks and repairs.
“Faramatsi and Glenwood are the potential buyers that have been selected for IDCZ’s 74 percent shareholding in Deven and evaluation (of the bids) is in progress,” one source revealed.
Faramatsi is also reported to be the investor, which acquired IDCZ’s 18 percent shareholding in Amtec Motors. IDCZ general manager Ben Kumalo, recently said the evaluation and short-listing of Deven Engineering bids were being finalised.
In 2018, Government approved restructuring strategies of IDCZ subsidiaries and associate companies through the State Enterprises and Parastatal Reform Framework.
The restructuring is not only confined to total disposal subsidiaries and associate companies, but also entails liquidation, privatisation and partial privatisation.
However, the privatisation process had been moving at a snail’s pace as most offers are well below market value. In some instances, investors that would have been short-listed are failing to provide the proof of funding of inject the agreed capital.
So far, IDCZ has disposed of its 51 percent shareholding in Almin Metal Industries, 49 percent interest in Stone Holdings while Zimbabwe Copper Industries was liquidated.
Potential investors for Zimglass, under liquidation, Irazim Textiles and Travan Blankets have been identified. IDCZ also received bids for Chemplex Holdings which required between US$70 and US$100 million for recapitalisation. IDCZ has also short-listed potential buyers for car assembler, Willowvale Motor Industry (WMI).
Meanwhile, IDCZ is engaging several other Original Equipment Manufacturers for the local production of their brands at WMI while pursuing disposal of its 74 percent stake.
At its peak, WMI was producing 18 000 vehicles per year before production plunged.
Some of the brands which WMI assembled include Madza, Nissan Mitsubishi and Toyota.
In 2017, the company entered into a joint venture with Chinese firm to assemble cars from semi-knocked down kits. The partnership resulted in the formation of Beiqi Zimbabwe, a joint venture between Chinese fifth largest car maker, Beijing Automobile International Corporation and Willowvale Motor Industries.
In 2018, the Government launched Motor Industry Policy, which seeks to attract foreign direct investment into the local automotive industry by 2030. By that time, Zimbabwe is hoping to have achieved upper-middle income status.
Online Reporter