Cabinet has approved a joint venture deal between the collapsed cold storage company (CSC) and a private company Boulstead Beef Pvt Limited to revive the meat processing concern.
Addressing journalists at a post cabinet briefing, Information minister Monica Mutsvangwa said the partner was set to inject USD$130 million into the joint venture over the period of five years as working capital and capital expenditure.
The private entity according to Mutsvangwa would take over CSC debts of USD$42 million and pays annual rentals of USD$100 000 during the first five years.
“In return the company would take over and run the management of the following CSC ranches for an initial period of 25 years, Maphaneni, Dubane, Umguzu, Chivumbuni and Darwendale,” Mutsvangwa said.
On top of that, government would give the private company to manage abattoirs for five years and these include, Masvingo, Bulawayo, Chinhoyi and Marondera.
CSC is a government entity that operated beef farms and abattoirs with its products being for export. It gas farms dotted around the country but it collapsed due to bad governance and plunder.
Asked to justify the 25 years period that the state was giving to the private company, Finance minister Mthuli Ncube said it was the feasible timeframe for the investor to recoup their capital as well as be able to make meaningful profits.
Also cabinet has approved measures to privatise state owned transport company, Zupco with government set to retain 51% while the private partner getting at least 49%.