IDC shortlists SA firm for ZGB stake
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Mr Mike Ndudzo

THE Industrial Development Corporation has shortlisted a South African company to buy its 49 percent stake in struggling Zimbabwe Grain Bag.
IDC has been seeking an investor to take over its stake in the Bulawayo-based grain company, which is a joint venture with the Treger Group of Companies.“We are still looking for a suitable investor but there is a South African company which we are talking to.

“We have asked them to do due  diligence and then make an offer.  We cannot name it now for ethical reasons.  We have received inquiries from some local consortiums which we are also evaluating,” IDC General Manager, Mr Mike Ndudzo, said yesterday.

It is estimated that IDC wants to dispose its stake in the company for at least $1,6 million.

ZGB was formed in 1986 to satisfy the country’s annual demand for grain bags which until that time were being wholly imported. At that time, the country was the leading grain producer in Sadc with agriculture the cornerstone of the economy.

The company is among many Bulawayo companies whose capacity has gone down over the years. – CAJ News.

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