CSC suspends project upgrade
THE Cold Storage Company ( CSC) — Boustead Beef Zimbabwe, has suspended rehabilitation works, putting on hold a programme that was expected to see the country’s meat processor and marketer resuming operations before the end of the year.
CSC- Boustead Beef consultant, Mr Reginald Shoko, told our Bulawayo Bureau that their revitalisation programme had been put on ice due to the adverse economic impact of Covid- 19, as the firm was presently unable to import equipment for retooling.
The global pandemic has seen many countries closing their borders and suspending passenger flights, while many value chains have been destroyed.
Said Mr Shoko: “The revitalisation programme is on hold for now because of Covid-19. As CSC-Boustead Beef Zimbabwe, we are relying much on China for most of the equipment and other components that are imported from that country to facilitate the rehabilitation programme.
“So, everything as regards our rehabilitation project has been suspended now. We will resume the programme once South Africa lifts the national lockdown, which we hope will happen in the next three weeks or so, then we would be able to import into the country some of our equipment, which is already in South Africa.”
Last year, the meat processor and marketer said the rehabilitation programme included the installation of modern technology, including a 3MW solar project at its Bulawayo headquarters before it resumes operations to address some of the operational inefficiencies facing the industry.
Some of the equipment such as solar panels, which were being imported from China, had in March started arriving at the CSC- Boustead Beef headquarters to pave way for the revitalisation of the firm. The company has not been operating for a period ranging between 15 and 20 years following operational constraints owing to a host of factors.
CSC-Boustead Beef Zimbabwe has entered into a strategic partnership with Econet’s subsidiary, Distributed Power Africa ( DPA), which will see all of the meat processor and marketer’s assets being solar powered by a 3MW plant.
Cabinet approved the US$ 400 million joint venture deal between CSC and a United Kingdom investor, Boustead Beef ( Pvt) Ltd.
The facility will be spread over the next three to four years. Under the first phase of the CSC revitalisation project, Boustead Beef Zimbabwe will invest US$130 million. At its peak, the beef processor and marketer used to handle up to 150 000 tonnes of beef and associated by- products annually and exported to the European Union, where it had an annual quota of 9 100 tonnes of beef. The firm used to earn the country about US$ 45 million per year.
The beef processing company has major operations in Bulawayo, Masvingo, Chinhoyi and
Marondera among other areas, while some areas in Matabeleland provinces have played a major role in breeding cattle.
President Mnangagwa has said Government was working on plans to invest in livestock heifers to be given to villagers to improve their stock.