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Cooking Oil Producers Face Viability Challenges

Cooking Oil Producers Face Viability Challenges

Zimbabwe ‘s oil expressers have been operating at 20 per cent capacity since the beginning of the year due to a myriad of challenges.

Oil Expressers Association of Zimbabwe (OEAZ) president Busisa Moyo said if the Central Bank and the Ministry of Finance fail to intervene within the next 30 days, the sector and its value chain will be pushed to the brink. He said:

Averagely, our members are operating at 20 per cent since the beginning of the year due to viability challenges. Some have shut down; others are considering cutting working hours and outright retrenchments due to the indications of deterioration.

If there is no improvement or urgent intervention by monetary authorities or Treasury in the next 30 days the sector and value chains developed thus far like the cotton clothing, soya bean to white meats and basic commodities will be significantly damaged or destroyed.

Low capacity utilisation has resulted in shortages, pushing the price of cooking oil to ZWL$48 from ZWL$28 per 2-litre bottle within a week.

More: Business Times

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