Zambezi Saw Mills in Mulobezi, Western Province has been finally sold at a cost of K1.2 billion.  ÂÂ
The liquidator Germano Kaulung’ombe says the sale of the company to the successful bidder was not easy due to the obsolete state of machinery.
Speaking during the handover ceremony of the Zambezi Sawmills to the buyer in Mulobezi, Western Province yesterday, Mr Kaulung’ombe said it had been difficult to find an investor for the Zambezi Sawmills as the company had run down and was non-functional.
He said it had been difficult to attract a buyer for the company due to the obsolete state of machinery compounded by the fact that the nearest conventional forest was about 50 kilometres away and was in a depleted state.
Mr Kaulung’ombe further said it had been a challenge to liquidate the company as it was not linked to the national grid adding that a bulk of investment in diesel is still required.
However, Mr. Kaulung’ombe said he has successfully sold the company to successful bidders at the cost of K1.2 billion.
He expressed happiness that all terminal benefits for former employees were settled down and that dividends would be declared to Government.
Mr. Kaulung’ombe expressed hope that the revamped operations at the Zambezi Sawmills would bring economic growth among the community in Mulobezi.
And Sesheke District Commissioner Godwin Nyuwa urged chief Inyambo Yeta and chief Moomba to iron out their differences in order to allow economic activities to run smoothly in the area.
Mr. Nyuwa condemned the disputes between the two chiefs which he said had at one time led to a breakdown of law and order.
He described Western Province as a ‘Cinderella’ province that urgently needs to develop, adding that activities that are meant to uplift livelihoods must be appreciated.
Mr Nyuwa commended the liquidator and the buyers of the company and advised the two chiefs to keep their wrangles off the operations of the company.
Meanwhile, the buyers of the company have said that operations at the newly bought company will commence soon.
Operations that will start with the assessment of existing assets, personnel, and potential employees will also assess the resuscitation of the Mulobezi Rail line
Zambezi Sawmills Board Chairman Fred Chunga disclosed that about US$ 86 million has been projected for recreation facilities such as a golf club.
Mr. Chunga said the company has projected to produce 1000 cubic metres of timber within its first 18 months of operations and produce about 5000 cubic metres of dry timber monthly.
He further said that 25% of profit generated in the area will be ploughed back into the community.
“The company is mindful of its community responsibilities and it will embark on upgrading schools, clinics, markets and create employment for local people”. Mr. Chunga said.
Mr. Chunga further said that the company will promote small scale timber production thereby generating income for the rural poor.
He said the company is also expected to venture into agriculture, wildlife, tourism and safari industries in order to fully revamp and sustain economic activities in Mulobezi.