DIVERSIFIED manufacturer, United Refineries Limited (URL), has reported a sharp decline in production as it is only operating at 50% capacity due to lack of access to foreign direct investment (FDI).
URL, the personal care, hygiene, and value-added agro-products manufacturer, like many other firms, is failing to access fresh investment as Zimbabwe has a high-risk profile. Further, local financial institutions are increasingly not lending in foreign currency.
In an interview with NewsDay Business, URL chief executive officer Busisa Moyo, said as they operated at 50% capacity and were relying on their strong brands to weather the storm.
“We have strong brands that have stood the test of time that we have refreshed and opened new export markets for,” he said.
“While only at 50% capacity utilisation, we have not struggled to find support from our channel partners made of wholesalers, retailers and now the informal sector. We have talented, experienced, and tenacious leader executives, staff and employees who can optimise the smallest opportunities.”
He said these people could also keep machine availability high and understood their equipment enough to “keep us going when we were unable to retool and modernise like our competitors with access to foreign direct investment”.
Moyo added that they were receiving support from the government through Statutory Instrument 64 of 2016, access to currency, the auction system, support for farmer’s soya out growers through AFC Holdings, and other financial institutions.
The statutory instrument restricts imports of certain goods into the country to give local players an edge over foreign competition.
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In URL’s case, this has proved effective as it is one of the largest cooking oil producers in the country which has partnered many farmers in the production of soya beans.
In a scheme called Soya Bean Out Growers Alliance, URL enabled farmers to access finances to plant their crops.
