The National Social Security Authority (NSSA) says its plans to invest in the Cold Storage Commission (CSC) will not be affected by the meat processors legacy debts which are being dealt with in a recently approved scheme of arrangement.
The cash rich state run pension fund intends to pump out $18 million to recapitalize CSC in an equity investment deal. CSC has debts amounting to $25 million mainly from fixed costs such as wages, rates and taxes on land.
“The legacy debt has been dealt under the scheme of arrangement, so that will be put to one side. l think there is a service year agreement which l don’t know the details but it’s not going to impact on what we want to do,” NSSA chairman Robin Vela told The Source in an interview on Wednesday.
“We are going to put a significant investment, predicated on our view of the future of CSC, we are not going to be irresponsible and just put money in, but we are going to make sure that whatever money we inject is supported by the fundamentals of the business,” he said.
CSC was one of Zimbabwe’s most strategic assets earning the country at least $45 million annually before its collapse. It is currently operating at under 10 percent of its capacity and reported to be making annual losses in the region of $6 million.