Zambezi Saw Mills in Mulobezi, Western Province has been finally sold at a cost of K1.2 billion.  Â
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.
Why is it that saw mills in govt hands ran on losses to the point of qualification to be sold-off, while those in private hands, ran and still do, on super normal profits? The private saw millers bought the ‘absolute’ equipment from the govt concerns and turned profits with them. Beats me.
Another company sold for song. Its cheaper than most of the houses in kabulonga, it may even be cheaper than the plot its built on. it beats me also.
In abundance of Zambian resources and labour then there comes an investor with nothing but sweet talk to dilute and confuse the feeble MMD govt that seems to be on rampage and behind the clock of selling Zambian properties… and stripped off the dignity the pipo have in their resources. If anything I didn’t know Zambezi Saw Mills in Mulobezi, Western Province was pegged at K1.2 billion otherwise I would have bought it.
Every country now has to respect the ratification of Kyoto protocol on green house emission and abhor of deforestation in order to maintain the global temperature and minimising the rate of albedo. With this in mind what is the govt policy on deforestation? Where is that rule KK imposed on charcoal burners that you chop one tree you plant 3? In the region Zed stands out to be the only country with a secondary vast forest on the copper belt “Chichele forest†that is yet to go in the hands of foreign investors. MMD govt needs a sjambok
welcome Ba Joze…you were missed…!
Is the London Court judgement against FTJ and co enforceble in Zambia?
#5 Personally i dont mind it not being enforced in Zambia, the message has been delivered to the current and future leaders and the precedence set. Remember ba FTJ wont be the same confident and proud person again especially not when wearing his demonised designer suits.
In view of the available resource envelop from member States, a prioritisation and planning workshop was held from August 6-8, 2007 to focus on targeting resources to critical programmes so as to avoid spreading resources thinly.Areas requiring harmonisation of national policies to deepen regional integration and enable the creation of a common market and monitory areas of three issues were identified.
They included trade or economic liberation and development through the free movement of goods, services and factors of production; stability oriented macro-economic convergence; intra-regional investment and foreign direct investment and productive competitiveness and supply side capacity.
Regional infrastructure development and consolidation of a climate of regional sustainable peace and security in and among States which are characterised by transparent and accountable governance was another area.In line with SADC priorities, Mr Mwanawasa said the summit held a brain-storming session on infrastructure development. “You will agree with me that, as we move closer to deeper regional integration level, suitable infrastructure and services have become an urgent need.“We have thus deliberated measures to enhance financing of regional infrastructure to support the Free Trade Area (FTA), Customs Union and common market,†Mr Mwanawasa said.
He challenged journalists to uphold morals if they were to remain true watchdogs over others.“I do not envy you as that implies that you have to live exceptionally flawless lives because there is no rationale behind watching over others if you are not better than them, lest you find yourself throwing stones when you are also living in a glass house,†Mr Mwanawasa said.
He said the bottom line was that the region was like a boat carrying everyone and as such everybody needed to row and make sure the boat did not sink but remained afloat because if it sank, all on board would perish.On chairpersons and deputy, Zambia which has assumed the chair and would be deputised by South Africa, while Tanzania handed over the chairmanship of the organ on politics defence and security cooperation to Angola with Swaziland being the deputy.
Our so called opposition parties are not only toothless but also useless. They are founded on greed and are used by various tribal Zealots, who would create no impact on a national platform, to curve a niche for themselves. They therefore term them ‘my people’s bargaining platform. Some of these parties are so bogus that many of their owners cannot distinguish between mission and vision of the party such is my Party PF.I swear over my mother’s body, PF is a lifeless Ghost Party. It has betrayed my only hopes for instant economic gain the way Ma Mudimu Dimu foot soldier are. I have tried over the months to break ba Ma Mundimu Dimu using insele on chuchu and his cohorts. But my mad witch Doctor Chi shi chilufya Sata is busy idolizing Mugabe at the expene of the party.
Abash Satanyong’o, viva abesu ku nkana uko ba Hon. Chimumbwa.
#7 Dont just copy and paste, zoom in on the interesting points. i just hope you never used to abscond summary lessons.
I have found the report below full of rubbish. It is a compiled dossier by some elements of a free Africa.
ZIMBABWE: ANARCHY IN FOUR, SAYS THE WEST
The economy of Zimbabwe is facing total collapse within four months, leaving the country facing a slide into Congo-style anarchy, The Sunday Telegraph has been told.
Western officials fear the business, farming and financial sectors may be crippled by Christmas, triggering a collapse of government control that could leave the country prey to warlords and ignite long-suppressed tribal tensions.
80 per cent of Zimbabweans live below the poverty line and the economy is close to total collapse
The stark warning of the scale of the crisis comes despite the welcome given to Mr Mugabe by fellow African leaders at a summit in neighbouring Zambia last week, where critics had hoped he might be pressurised into changing his policies.
It also follows reports that Britain’s military is reviewing contingency plans to evacuate more than 20,000 Britons, were any widespread state of emergency to occur.
Speaking anonymously because of the sensitivity of the subject, one Western official said: “It is hard to be definitive, but probably within months, by the end of the year, we will see the formal economy cease to work.”
He added: “One of the great dangers in all this, if Mugabe hangs on for much longer, is that the country will slip from authoritarianism to anarchy, the government will lose control of the provinces, it will lose control of the towns and you will have a situation where the central authority’s writ no longer holds.”
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Asked which other African nation Zimbabwe might end up resembling under a worst-case scenario, the official cited as an example the Democratic Republic of Congo (the former Zaire), beset for years by famine, civil war and inter-ethnic conflict.
There are also fears that a breakdown in law and order could lead to an outbreak of ethnic conflict between Zimbabwe’s two main tribes, Mugabe’s own Shona and the Ndebele in the southwest.
Some political groups are already talking about regime change as an opportunity to press for independence, while more extreme elements have voiced agendas that could amount to “ethnic cleansing”.
The official added that, because of Mr Mugabe’s slum clearance programme, -Zimbabwe’s informal subsistence economy, made up largely of street traders, hawkers and black marketeers, had lost much its ability to absorb shocks from the government’s three-month price freeze, which has emptied shop shelves of stocks.
Poverty was now endemic, he said, with 80 per cent of people living “below any definition of the poverty line.”
The fear among Western officials is that as Zimbabwe sinks deeper into crisis, the task of rebuilding, if or when Mugabe does go, is being made ever more difficult.
The infrastructure is breaking down after years of no investment, with both Bulawayo and parts of the capital, Harare, virtually without water supplies.
The Zimbabwe Electricity Supply Authority generates barely a fifth of the country’s needs and neighbouring countries’ generating companies are now refusing to sell to Zimbabwe except for cash.
John Robertson, a Harare-based independent economist, said the prediction that the formal economy would cease to function within four months might even be optimistic.
“We could be a matter of a month or two away from that kind of collapse, and some would tell you that it’s happened already,” he said. “They can’t pay the wages that would be necessary for people to carry on working, because the price at which they’re allowed to sell goods is way below the production costs.”
The most immediate effect of the worsening economic situation is escalating migration.
The Western official said that four million Zimbabweans, or around one third of the population, had already left the country, with “another two million packing their cases to leave”, mostly to South Africa. The “flight rather than fight” strategy, however, suggests a mass uprising against Mr Mugabe is unlikely.
While Western governments have publicly backed attempts by South Africa’s president Thabo Mbeki to mediate between the Zanu PF government and the opposition Movement for Democratic Change in a bid to ease the political crisis, there was little sign of a breakthrough at last week’s 14-nation Southern African Development Community summit in Zambia.
Privately, Western officials now say that “the time for talking is past”, and that reconciliation between government and opposition is unlikely.
Zimbabwe’s neighbours now had to decide whether they were willing to tell Mr Mugabe that his policies were not acceptable, said the official.
“We’re not talking about tanks across Beit Bridge (the border post with South Africa) but they do have to decide whether there is a stick in this equation and what that stick should be,” he said.
#8.Impersonation is illegal and you should be ashamed of yourself.Simply gather enough courage and express what you believe in without any fear unlike impersonating Ba Joze.If there`s no enemy within the enemy outside can do you no harm.Do not be spineless and scared of your own shadow.
#10 With due respect ba Vete, whats wrong with that report? I dont know whos to blame between Mugabe and the west, however, the fact is that Zim is indeed a sinking ship. Take some time go and see it for yourself, ala fyakushimikilwa.
I think number #12 is right. A Zimbabwean work mate of mine who’s just been there for the last 3 weeks says this report has understated the situation! The guy gets close to tears when he speaks of what his family and other ordinary Zimbabweans are enduring. He was a staunch Bob supporter but has come back a different person all together. I think it’s time we stopped commenting about Zim without knowledge of what’s really going on there. A colleague in LSK tells me Zim mothers have now taken over selling of cigarettes and sweets in buses at Inter City.
# 8 Veteran stop being an imposter.
Iwe Veteran stop using my ID. You know for sure ati ba Sata is my hero and I can not insult him. Leka ukupepa ifyamba fya kuteka farm ifyo wita ati organic dobo. If you have no articles to copy and paste then do impersonate ba Joze ID better go and spend time with your wife with copy and paste children of ba neighbour.
Ba Joze…! what has sata ever done for you! do not support blindly….what’s in for you! another stand ku soweto market…?
The ZIM Issue is very senstive it must be handled with care that is the way out. Zambia suffered the same from 1987 to 1990 thank God we had money in the reserves that is why things seemed not to so bad but it was very bad. Can anyone here tell me why should the west impose their on leaders on us. They did it in Zambia thank God we are peace. Look at DR Congo noone talks about it yet pipo they suffer more than in ZIM. The reason is simple who benefits from such conflicts. for 100 years it has been like that. I repeat this from a british businessman in DR.Congo Iam not here to serve morals saviour for these pipo anyway they need food to eat. Please get informed before you critised the Bob Govt Human rights abusive is not good but Bob never imposed sanctions on his people. They are interested parties in this case.
“US$ 86 million has been projected for recreational…”
Gents and Ladies, Is this a typo? US$ 86 million on a golf course??? Sounds suspicious to me
Ba Dakasets(17), that story sounds like a famous railway being built by a “prominent” Zambian!Bushe abantu balishiba epo $86million yapela? I think we are so used to billions, 86 million irrespective of currency seems a small sum!!
For a song … We should realise in what state the sawmills was. No investment in modern machinery was done by GRZ, so that depleted the company to very unfortunate state. Secondly, fellow zambians we should start thinking of owning our country. All these resources are being taken by south africans, chinese, etc there will be nothing left in our hands.How I wish the so called “Monied-Zambians” both at home and diaspora, can start buying back our country, even timber and copper is in foreign hands.Lets not be arm-chair critics otherwise our interaction on such blogs become useless, better now we start discussing issues of national benefit – “Its what you can do for your country”.