gtag('config', 'UA-12595121-1'); Govt’s increased stake in Cottco, Silo foods anticipated to restore viability – The Zimbabwe Mail

Govt’s increased stake in Cottco, Silo foods anticipated to restore viability

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EXPERTS is expecting the increased government shareholding in Cotton Company of Zimbabwe (Cottco) and Silo Foods to facilitate the growth and viability of the strategic firms and their contribution to the national economy.

The government recently increased its stake in COTTCO to 51 percent, while it now has 74 percent shareholding in Silo Foods.
The move has since been hailed as key in restoring viability in the firms.

“These firms are of strategic importance to the economy to such an extent that their contribution to viability remains a key cause for concern,” said Mr. Basil Nyabadza, an agronomist.

“There are still some issues over whether the plan can translate growth or not in the entire value chain of the industry,” said Dr Nyasha Kaseke, UZ Business School Chairperson

The government increased its shareholding in Cottco to revive the entity and facilitate timeously payments to cotton growers While the increased stake in Silo Foods is aimed at guaranteeing the availability of basic goods and creating favourable pricing models.

The move to increase shareholding of the two firms was approved at Wednesday’s Cabinet with Treasury now facilitating payment of cotton farmers who had not received their payments for last season. This season’s cotton marketing season is already underway.

Silo Foods is a company established in July 2018 to produce and distribute value-added agricultural products, food and livestock products.