Holiday Inn Express Beitbridge up for grabs
CAPTAINS of Zimbabwe’s industries called for urgent measures to address a gruelling power crisis this week, as several listed firms reported reduced output.
So dire has the crisis been that in some cases, industrial firms lost up to 30% of their production due to rolling blackouts of up to eight hours a day, according to Mike Kamungeremu, the Zimbabwe National Chamber of Commerce (ZNCC) president.
He hinted of threat to jobs, unless the crisis is resolved.
e country has been affected by continuous power outages in the past few weeks, which have been precipitated by depressed generation at ageing power plants and breakdowns.
National power utility, Zesa Holdings projects the crisis to end when it brings newly refurbished units at Hwange ermal power plant early 2023.
But already, firms say production stoppages have held back progress.
e Zimbabwe Stock Exchange (ZSE) listed Amalgamated Regional Trading (ART), Starafrica Corporation Limited, Ariston Holdings and Border Timbers were among firms that red flagged the power crisis this week.
“e volumes for the paper division fell by 26% compared to the prior period with gains made in the first half being reversed due to raw material shortages, erratic power supply and major breakdowns at the mill,” ART said in an analysis covering production for the third quarter ended June 30, 2022.
Border Timbers attributed depressed output to rolling blackouts among other challenges.
“e reduction in sales volume was mainly driven by low production volume as a result of power outages as well as the extended rainy season that affected harvesting (of timber) operations,” the firm noted in a report for the third quarter ended March 31, 2022.
Starafrica Corporation, the firm that deals in a variety of businesses, moved to address the power crisis by securing a dedicated power line during the first quarter ended June 30, 2022.
It said its sugar milling plant was among the worst affected by blackouts.
“Power and steam supply constraints were the main causes of the reduced throughput at the refinery, as they negatively impacted plant uptime,” the firm said in a trading update.
“Consequently, the reduced production led to a 3% decrease in sales volumes when compared with the prior year. e business has since installed a 11kV (kilovolt) dedicated power supply line, procured a 1 000kVA generator and electrical cables to augment power supply,” Starafrica Corporation said.
It said along with investments into power supply, the firm was finalising an
To A2
THE building that housed Holiday Inn Beitbridge Express has been placed on the market for US$4 million, six years after the operation collapsed, businessdigest established this week.
e sale, which was confirmed by a real estate agent, becomes the latest demonstration that there could be no space for big brands in the border town - a gateway into South Africa, which is strategically located between major Zimbabwean and South African national parks.
e three star property, which was operated by the Zimbabwe Stock Exchange (ZSE) listed leisure chain, African Sun Limited (ASL) collapsed in 2016 after traffic into the border town fell by wide margins as tourists avoided Zimbabwe over a myriad of reasons.
Government had imposed a 15% tax on tourists, a move which turned Zimbabwe into one of the most expensive destinations in the region.
And apart from multiple roadblocks that were mounted along the Beitbridge– Masvingo–Harare highway, under the late strongman, Robert Mugabe’s regime, the transnational artery posed a danger to passengers after government failed to repair it over many decades.
Holiday Inn Beitbridge Express, along with Rainbow Tourism Group’s Rainbow Beitbridge Hotel, which also closed around the same time, had been strategically positioned to attract overnight stayers from South Africa who would be driving to Zimbabwean destinations.
But big players were facing stiff competition from small scale properties in the border town.
After ASL left the property, it was turned into an office block for the Zimbabwe Revenue Authority office, according to Nancy Memory Machemedze, a representative of the agency that has the mandate to scout