Harare – The joint venture between Cold Storage Company with Boulsted Beef Pvt Limited to revitalise the former through a Concession Agreement under Rehabilitate, Operate and Transfer terms is progressing well, Cabinet has reported.
According to the cabinet report, under the agreement Boulstead will raise and invest a minimum of US$130 million into CSC over 5 years, being both capital expenditure and working capital for the business, pay off CSC debts totaling US$ 42 530 597 as well as pay rentals during the first 5 years.
In addition, Boulstead will take over the management of CSC ranches (Maphaneni, Dubane, Umguza, Chivumbuni, Mushandike, Willsgrove, Darwendale) for an initial period of 25 years.
Similarly, for abattoirs in Bulawayo, Chinhoyi, Masvingo, Marondera and Kadoma.
The deal is expected to increase capacity utilisation at CSC ranches and abattoir plants, restore CSC’s viability and also contribute to the growth of the local livestock and beef industry.
– Equity Axis News