The Government of Zimbabwe has entered into a 25-year concession agreement with a United Kingdom firm, Boustead Beef (Pvt) Limited to acquire its largest meat producing firm, the Cold Storage Company (CSC). This is to revitalize CSC under Rehabilitate, Operate and Transfer (ROT) terms.
Based on the agreement, Boustead would invest US$130 million as working capital and cater to capital expenditure in the first five years. The UK firm will also pay for the rent, clear off CSC’s long-standing financial debts and for 25 years, the firm will take over and manage CSC’s ranches, abattoirs, distribution centers, and residential properties.
Information, Publicity and Broadcasting Services Minister, Monica Mutsvangwa said the investment agreement will increase capacity utilization at CSC ranches and abattoir plants; increased prospects for restoration of the enterprise’s viability and higher output; stemming of further deterioration of equipment which is currently lying idle, and the growth of the local livestock and beef industry.
“Government are supporting them to make sure that they can really resuscitate CSC to its former glory,” Professor Mthuli Ncube, Finance and Economic Development Minister added.
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