TANZANIAN investor Bakhresa is set to invest $40 million in Blue Ribbon Industries (BRI) by end of September, a move that will see the company increasing its output.
BY VICTORIA MTOMBA
Currently, BRI is producing at 60% to 70% on maize meal and 10% to 15% on flour. The injection would see maize meal capacity rising to 100% while flour would peak to 80%.
BRI judicial manager Reggie Saruchera yesterday told NewsDay that the food processing company would also engage contract farmers in wheat and maize production.
“We are doing a scheme of arrangement with creditors and $40 million will be coming from a group of investors from Tanzania, Bakhresa, end of September,” Saruchera said.
Saruchera said the Tanzanian group would wholly own BRI. It would then give workers 10% and further sell to locals until the 51%-49% threshold was met in compliance with the empowerment legislation. The Indigenisation Act stipulates that at least 51% of all foreign-owned companies operating in Zimbabwe should be in the hands of locals.
Bakhresa has operations in Rwanda, Uganda, Kenya, Malawi, Zambia, Mozambique, Burundi and the Seychelles.
Saruchera said BRI was operating with $3 million that it received through a supply arrangement. He said the business used maize meal and flour and the coming in of the funding would help the business and boost agriculture sector.
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He said BRI would provide a ready market for farmers since at the moment companies did not have a market for their produce.
“We will come up with various support schemes for farmers. At the moment we cannot specify, but the agriculture sector will benefit from the support,” he said.
BRI closed shop in 2012 due to funding constraints and was placed under judicial management to revive its operations. The company had a loan of $2 million that it failed to repay.
It was among one of the best performing companies with its Chibataura and Ngwerewere mealie-meal brands.
BRI divisions include BRI Logistics, Blue Ribbon Foods, JA Mitchells and Nutresco Foods.
