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Zanaco, StanChart to pump $2m into Kasama Coffee

Zanaco, StanChart to pump $2m into Kasama Coffee
Written by Patson Chilemba in Kasama
Thursday, October 08, 2009 4:48:14 PM

KASAMA Coffee general manager William Mtonga has revealed that ZANACO and Standard Chartered Bank will invest an initial US$2 million to recapitalise the company.
In an interview, Mtonga said the company was currently under receivership since September 2008 being handled by PriceWaterhouseCoopers.

“The way forward, banks want to invest funds to recapitalise the company so that the asset can gain value. Zanaco and Stanchart will invest about US$1.5 million to US$2 million dollars from the initial stage,” Mtonga said. “It’s on care and maintenance. All that funding is for care and maintenance.”

Mtonga said Rift Valley, which previously ran the company before it went under receivership, was the same and only company that had bid to take over the operations of Kasama Coffee.

Mtonga however said the company expected to yield 400 tonnes of coffee during the 2009 season which would be exported through auctions by the Coffee Growers Association.

“Currently, it is 3630 primary grade per tonne... 3630 primary grade is the first grade. This one is properly developed coffee,” said Mtonga.

And one of the company’s employees said the company had a workforce of 3,000 but only 150 had remained during the care and maintenance period.

“We work for K8,750 per day,” said the employee.

Labels: KASAMA, STANCHART, ZANACO

posted by MrK @ 3:49 PM