Maravi

Govt warns defiant investors

Govt warns defiant investors
By Kabanda Chulu in Kawambwa
Friday March 28, 2008 [03:00]

KAWAMBWA Tea factory manager George Mwansa has said the company is struggling to penetrate the export market due to lack of modern equipment. And Luapula Province acting permanent secretary Clement Siame has warned Khumah Holdings of Zimbabwe, which is the holding company of Kawambwa Tea, to stop defying government directives. During a tour of the tea estate and factory on Tuesday, Mwansa said the company was producing 100 metric tonnes of tea per month when it reached peak production.

“But when not operating at full capacity, we only produce between 60 and 70 metric tonnes of tea and out of this only 24 tonnes is being taken to the Mombassa auction floor in Kenya where buyers are found,” Mwansa said. “We export tea as a finished product, packaged as Kawambwa Tea and the quality is good because we sell everything at the auction floor but our export volumes are not high as compared to the region due to lack of modern equipment.

For instance, it is difficult to compete with others that are using the Continuous Fermentation Units (CFU) while we use the old system and only shareholders can answer on matters of recapitalisation.”

Kawambwa Tea was state-owned until it was sold off in 1996.
And Siame said the new owners of the company had failed to run considering their incapacity to recapitalise it.

He also warned Khumal Holdings that the government would not allow defiant investors.

“It is an acceptable that these people are not investing in the company and they are just taking money elsewhere and also why should they operate without hoisting a Zambian flag at this factory?” said Siame.

Labels: MANUFACTURING, TEA

posted by MrK @ 8:13 PM