Workers take over Costain

in probably one of the biggest empowerment deals in the country.
Before the deal, Costain was 85 percent owned by the UK-based Costain International. Management and staff held the remainder.
Although the finer details were not immediately available at the time of going to press, sources familiar with the deal said the consortium had secured a loan to buy out Costain International.
The consortium is led by chief executive Mr Tendai Chimuriwo.
“Costain is now wholly owned by workers and the management staff,” said a source, requesting anonymity. “They bought the 85 percent stake owned by Costain International.”
Last week, the Costain top executive met Youth Development, Indigenisation and Economic Empower-ment Minister Saviour Kasukuwere to appraise him on the deal.
Minister Kasukuwere confirmed the meeting but would not give details. There was no comment from Mr Chimuriwo as he was said to be in meetings yesterday.
The Costain deal is in line with the new indigenisation and empowerment laws, which require foreign-owned firms to dispose of 51 percent of their shareholding to Zimbabweans.
Last year, Schweppes workers acquired a 51 percent stake of the company from the Coca-Cola Company. Delta bought the remainder.
Costain is one of the biggest and long-established construction firms in Zimbabwe. It has been involved in the building of major landmarks such as the Reserve Bank building, Karigamombe, Eastgate and Westgate shopping complexes.
Costain started operations in Zambia in 1947 where it was involved in massive housing projects. In the same year, it opened shop in Zimbabwe.
It was involved in the Kariba Dam project where it was awarded the contract to build the township and associated infrastructure.
From the 60s to the end of the 70s, Costain consolidated its position as a national player in the construction industry.
In the first three decades of its operations, the company had assumed the status of the leading construction company in the country.