Home » Business » SA Firm Favoured for IDC Stake

THE Industrial Development Corporation (IDC) has shortlisted a South African company to buy its 49 percent stake in struggling Zimbabwe Grain Bag.

IDC has been seeking an investor to take over its stake in the Bulawayo-based grain company, which is a joint venture with the Treger Group of Companies.

ldquoWe are still looking for a suitable investor but there is a South Africa company which we are talking to. We have asked them to do due diligence and then make an offer,rdquo IDC General Manager, Mike Ndudzo, said on Wednesday.

ldquoWe cannot name it now for ethical reasons. We have received inquiries from some local consortiums which we are also evaluating.rdquo

It is estimated that IDC wants to dispose its stake in the company for at least $1.6 million.

ZGB was formed in 1986 to satisfy the country’s annual demand for grain bags which until that time were being wholly imported.

At that time, the country was the leading grain producer in the Southern African Development Community with agriculture the cornerstone of the economy.

The company is among many Bulawayo companies whose capacity has gone down over the years.

Source : CAJ News Agency