Problems at Kawambwa Tea Company in Luapula province are expected persist as the Zimbabwean investor, Kumul Holdings, says it has no resources to resume production at the company.
And Secretary to the Cabinet, Roland Msiska, has pleaded with workers to give govt time to study the contract which the two parties entered into before taking action to avoid legal implications.
The workers fumed when they saw the investor in the meeting after years of his disappearance from the country following a backlog of debts in unpaid salaries to the employees.
The workers and management requested that the investor be ejected from the meeting and District Commissioner, Ivo Mpasa, wondered how the investor found himself in the meeting without being invited by either govt or the workers.
Secretary to the Cabinet, Roland Msiska, sympathised with the workers for having stayed without salaries for many years.
Dr Msiska said the problems of the tea company have come to the attention of govt but could not disclose the action it intends to take.
He commended the workers for keeping the company alive though without salaries.
Dr Msiska pledged to engage the Ministry of Commerce to strategise on how the tea company could be saved from demise.
Representative of the workers, Wellington Mwewa, lamented how the workers have suffered for the last ten years the company has been in the private hands following its privatisation by the former govt.
Mr Mwewa appealed to government to consider repossessing the firm and further recapitalise it so that it once again could start producing tea.
He stated that all the workers have resolved not to accept the Zimbabwean investor whom he described as an unfaithful investor.
Mr MWewa noted that it is evident that the investor has failed to commence production since taking over the company.
And in a separate meeting, the Zimbabwean investor confirmed that his company is struggling to raise funds to resume production, noting that it will take more than 18 months to start tea production.
Company Business Development Manager, Gilbert Marebe, said his company is fundraising to ensure that the tea company is revamped but noted that it will take time because the firm has lost a lot of money hence he could not give the Secretary to Cabinet a definite time frame.
Mr Marebe stated that he would contact the company headquarters in Harare before making commitment to revamping the tea company.
Dr Msiska is in Luapula Province on a familiarisation tour and to inspect some government developmental projects.
ZANIS
thats PF for you fellas…company fundraisisng…
I didn’t know that PF had been in power for 10 years. But then again sloof like you are still living in la la land under the MMD.
Uli chipuba sana iwe ngwele. PF has just found this problem which yo fellow baboons (MMD) creted and are now trying to find a lasting solution to bring life to the company. Dont show yo ignorance by commenting blindly
Zimbabwean investor???
Much as these magorere are known heavy tea drinkers, the sustainability plans of their investment should have been reviewed prior to take over! incompetent ZDA.
Isn’t that part of the MMD legacy? At one time our vocabulary was privatisation, downsizing or rightsizing or pruning, retrenchment, liquidation. We were told foreigners with money will come running for the attractive investment climate in Zambia. An so went Livingstone Motor Car Assembly, Rover Zambia, FIAT, Dunlop, Jonson & Jonson, Mansa Batteries, Mongu Cashew nuts, Munushi Banana Estate, Chishinga and Mbesuma Ranches, Luangwa Industries, Pineapple Canneries, Zambia Airways etc. I just wonder how many people and families could have benefited had they remained employed by these companies. Not that it was bad to privatize, but the pace and urgency…eish. That was part of STRUCTURAL ADJUSTMENT PROGRAMME which later brought us to HIPC as we graduated to positive GDP growth of nowadays.
Spot on! And the beneficiaries are…..
Add to that Contract Haulage, LENCO, ZCBC, Maiseni, ZNWC, Namboard…. Kuti walila mwe
@Zon van der bull, the intention of the reforms were not bad at all. But the MMD led by our hero FTJ was just too fast and cantankerous for proper evaluation and execution of the Structural Adjustment Programme. We lost more than we gained and this took us many years backwards man. Even if it is true that “government has no business in business”, Your approach as MMD was jaundiced by the hatred for anything Kaundaish… Now, you see how we are crying for credible investors?
@Darcey, indeed one can cry if you think about it so much… That is why I find it hard to reason with those that thought PF should have come with a completely new set of programmes and abandon everything MMD left. People ought to know how to manage transitions…
‘He stated that all the workers have resolved not to accept the Zimbabwean investor whom he described as an unfaithful investor’…………….Since when do workers choose investors?
Zimbabwe can not produce a credible investor. Gvt must look somewhere else.
@Vota Card
Don’t judge Zim by its political climate Zim has very successful entrepreneurs like Telcoms billionaire Strive Masiyiwa when we are just good at talking, brief case black market businesses and outsourcing our businesses to the highest bidding foreigner. What YOU should be asking YOURSELF is what criteria was used to select this investor in the first place?
I am scratching my head on why this company can fail to be a success…Kawambwa Tea can be packaged as a niche product and could easily sale in specialist tea retailers in the USA and Europe.
If the was need for gov’t to implement protectionists policies to save this company it has to be now to discourage imports.
Iam still scratching my head…how?
…in specialist tea retailer’s outlets…
Actually, the northern region of the country can do well in plantation farming because they suit ecologically. You get more rain favouring this kind of enterprise. Many of such stuff as coffee, tea, sugar, pineapple, timber, mango, orange and many more can do very well in this region. While naturally the southern part of our country can support much annual cropping and livestock because ecologically you get spaced woodland offering a lot of grazing land.
However, you need foresighted investment promoters and politicians that invest in support facilities such as power for processing industries and so on and so forth.
You are right about Zimbos, but our MMD was just bonkers when it came to the selling of companies. No proper evaluations
Exactly, I still do not see why cashew nuts and tea should be going to waste like this when there is a thriving lucrative market for them in the west, this is one sector that the gov’t should be stimulating and investing if we truly want to diversify from the mining sector. You’re right about NP…Zambeef has already invested in Palm Oil plantations…remember that Palm oil is used in virtually every food manufacturing process hence the attraction to profit driven investors world over but not “Zambian millionaires”…what’s annoying though is that our so called businessmen are only interested in gov’t contracts and politicking nobody wants to roll-up their sleeves and do the work.
@Jay Jay, you are right about the attitudes of our people, even those with money. As for the Tea Estate, we sold. That means we have no ties with the company what soever. The owner can do with it as he pleases.
However, these were strategic companies set up as part of the economic diversification effort and also to provide employment to our people in rural areas, at the same time stem the rural urban migration. We managed to sell these companies after Kaunda in a manner equal to “throwing away the baby with the bath water”, no legal clauses in the disposal contracts to reposes such should the buyer flounder. Effect is that up to now have not seen alternatives for people we made to taste tea and then took it away. So they are nostalgic and want tea back on a moral
We definitely need an Enterprise Road Map…..North Korea did it 20 years ago nothing stopping us doing it in a much shorter timescale given that we are blessed with all the resources.
@chindakwanda, ur spot on my Brother. Ur the kind of bloggers needed on LT not This pet kod Jay Jay whoz Just a mère NAMAZAI struggling in a foreign land and bringing his frustration on LT. Jay Jay akupipafye utukokote
Thank you very much for your wise contribution today and have a wonderful weekend.
How much is needed to resume operations? Kindly advise, thanks a trillion
Think of a $25m at least.
Ba Chindakwanda-Galileo Galilei:
Thanks a trillion for your response. What are the annual revenues, and what is their current market share. How about the export market? What are their current assets? What are the current liabilities?
We can do an acid test and determine based on the above, their viability … please advise.
Thanks a trillion once more.
BA BR Mumba naiwe, Then why did you ask such a question on this forum? If you need or had interest about financials of a company you would surely find and know better avenues.
What is your main point? Ni Nalikwata indalama??? I have no further comment Sir.
Zimbabwe investor? The Bank of Zimbabwe has less than $200 in the bank or has the situation changed? Citing a wealthy somebody from bankrupt nation does not make any difference. Until Zimbabwe removed that crazy pensioner from the top office the country will continue to deteriorate.
We were so quick to take over ZAMTEL and Zambia Railways which were doing much better than what we are hearing about Kawambwa Tea. Why is govt hesitant to take it over? Just compensate Kumul holdings as you must have quietly done Finance Bank, Lapgreen and Spoornet. Zanaco was almost gone to govt as well.
Though in doldrums, Kawambwa Tea is much more viable than Mansa batteries. Do this for the people of Luapula and Zambia. MMD govt sent many delegations to Kawambwa who brought back reports and recommendations but there was lack of political will to look the problem in the face and tackle it. Speaking from partisan political platforms will not get us anywhere. Let the govt do its job.