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Munyaradzi Doma in Zvishavane
Runde Rural District Council has resolved to dump its butchery project after it registered losses amounting to $3 700. The latest development will leave the local authority operating only two businesses.

The council’s established Income Generating Projects (Pvt) Ltd has a farm, beerhall and butchery. The butchery will now be leased for a year, with an option of renewal or cancellation. In a recent interview, finance director Mr Tarirayi Sibanda said the three entities were expected to declare annual dividends. It emerged during a full council meeting last week that the butchery had been dumped due to major losses.

“We have decided to stop operations for our butchery at Siboza Business Centre and the entity will be leased with effect from January 2018,” Mr Sibanda told the meeting.

“We realised that because of the prevailing economic conditions, it will be difficult to continue running the butchery. We were having challenges with our farmers who want cash for their cattle, but we would have hoped that they accept other forms of payment like EcoCash or swipe, so that was really a challenge.”

Councillors queried the decision to completely close the butchery. Mr Sibanda said the butchery would be leased out, while council monitored the situation.

“Though some are saying that because of the new dispensation we should have given the project some time, let me also say that the new dispensation does not allow that you continue running a business that is making losses,” he argued.

Chief Masunda, who also attended the meeting, questioned the business strategies council wee using as the same area had other butcheries making profits. In response, Mr Sibanda said council operated its businesses differently from individuals because they had more expenses. Council runs a beerhall at Siboza, while the 157 hectare farm is in Mazvihwa.

And as part of its strategy for the beerhall, the municipality allocated $10 000 in its 2018 budget for renovations, while the farm reportedly needs dedicated personnel to manage operations.