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Surface Wilmar Operating At 15% Capacity

Surface Wilmar Operating At 15% Capacity

Zimbabwe’s biggest cooking oil manufacturer, Surface Wilmar says it is operating at 15 per cent capacity due to foreign currency shortages that are hindering the importation of raw materials.

Surface Wilmar receives foreign currency from the Reserve Bank of Zimbabwe (RBZ)’s forex auction system but the allocation of funds has not been consistent.

The company’s executive chairman Narottan Somani, recently revealed that they were largely dependent on foreign currency allocations from the RBZ. Said Somani:

We are currently operating at 15 per cent capacity utilisation, it all depends on RBZ how much money they give us, sometimes they give us money we run for 15 days sometimes they do not give us and we shut the plant for a month.

Local farmers are unable to produce adequate cottonseed and soybean for the oil manufacturing industry.

This has forced the country to spend millions of dollars in foreign currency per year on the importation of Crude Degummed Soya Bean Oil (CDSBO).

Surface Wilmar exports cooking oil to Malawi and Mozambique while margarine exports mainly go to Zambia, Malawi, and Mozambique.

It also exports stock feeds mainly to South Africa and lint to Japan.

The company has, however, reduced its exports given that RBZ retains 80 per cent of the export earnings. Said Somani:

Today when we export there is a retention amount to be paid back to Reserve Bank when we export $400 we get $80 back, now my raw material cost is more than $80, so how do I replenish that, so we target the local market.

The Industrial Development Corporation of Zimbabwe (IDCZ) has a 10 per cent in Surface Wilmar while the rest is owned by SR Amando, an investment vehicle that includes the Somani family and Wilmar international.

More: Business Weekly


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13 Comments

Jah🇿🇼Tsvarie-07 1 month ago

I said it that companies stopped exporting because of RBZ, in one word.
RBZ SHUTS INDUSTRY


Machiavelli 1 month ago

It's sad to watch industry collapse under ED's watch. Investors have pumped in money to produce, and they're helplessly watching their investments operating at 15% of installed capacity. Meaning that they are realistically working for utilities, labour, taxes(government) .

Return on Investment is either zero or negative. Eish, they produce export and what happens? RBZ takes 80% of their earnings to give to parasites and looters like Tagwireyi (Sakunda) who produce nothing.

This government is clueless and deserves to be shown the exit door

Please register to vote


cde simukai 1 month ago

kana musinganzwisisi economics dzikutaurwa apo ko kunyarara kunei mumbotanga manodzidza.


dheil 1 month ago

its simple mdhara company iyi irikushandira mafounders nekusha dira RBZ

i dnt know are these cost had been tabled bfore the construction a plant
varikuti tikaenda neRTGS kuAuction yeRBZ tinoswiper rtgs topihwa USD,so those USD will use them to buy material such us Soyabean,sunflower and other accesories which aid in oil,margarine making

so pa400usd yeku auction Rbz inoti dzorerai 80% which means Surface Wilmer arikudya 32usd pa every 400usd yaapihwa nebank

tobva ipapo Surface anobhadhara Tax,mayearly operating licenses
labour,bills,insuarance

varidzi vecompany vana SWilma vanodawo mari 10%

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keny 1 month ago

i think its wise to supply local then do DUAL PRICING, all forex from sales must b used for importing materials then maRTGS aya oita malocal expenses

umm amana macompany arikutatarika aya 15% operational on a plant ?

like seriosly ,bank rodawo Wilmar family yotorawo haa hausundiba anhuwoyeeee


Chen 1 month ago

As long as they depend on RBZ/Tagwie funders , business is bound to fail.


quiry 1 month ago

taurai zvenyu, maths dzacho unodzishaya kuti dzofambiswa sei. Ko mabroker here kuzoda kupiwa mari neRBZ shandisai yebusinesa renyuzve nhaimi


🤠 1 month ago

Simple stuff here, Mr Somani clearly stated an example where if they export $400 , they are only given $80 and RBZ retains 80%, ie $320.

ery 1 month ago

its simple mdhara company iyi irikushandira mafounders nekusha dira RBZ

i dnt know are these cost had been tabled bfore the construction a plant
varikuti tikaenda neRTGS kuAuction yeRBZ tinoswiper rtgs topihwa USD,so those USD will use them to buy material such us Soyabean,sunflower and other accesories which aid in oil,margarine making

so pa400usd yeku auction Rbz inoti dzorerai 80% which means Surface Wilmer arikudya 32usd pa every 400usd yaapihwa nebank

tobva ipapo Surface anobhadhara Tax,mayearly operating licenses
labour,bills,insuarance

varidzi vecompany vana SWilma vanodawo mari 10%

infact locally ppl are buying the companies products with RTGS as you know rtgs wont import anything,exporters use USD as official currency to trade the best way to get a forex is to go to auction to get the USD

so RBZ as a an auctioneer it charges 80% on every amount t disburse to SW so company iyi irikutatarika f this goes for 3months t will do complete shutdown coz feasibility study is telling that

its operational costs are nonsustainable

the return per dollar invested is on a negative

🤨🤨 1 month ago

Munoziva mathematics hre imi ana dahwa kana kti makangozara politics mumusoro menyu

shaolin soccer 1 month ago

Moshaya foreign currency sei isu mafuta tichitenga @6USD Per bottle?


🤨🤨 1 month ago

Six chii iwe ka usadaro

diks 1 month ago

uri shaolani chaiye ndekup kwatenga 2litres oil for 6usd

1089 is the retail price for Raha oil 2litres


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