Govt injects $8m into cooking oil production

THE government has allocated $8 million to two of the country’s top cooking oil producers to enable them to procure raw materials in a bid to avert a shortage of the basic commodity on the market, Standardbusiness can report.

By Taurai Mangudhla

Following reports of a recurrent shortage of basic commodities such as cooking oil, laundry soap and sugar on the market, government, through the Reserve Bank of Zimbabwe (RBZ) provided $8 million for the two companies to ensure raw materials are timeously procured to meet growing market demand. The shortages have prompted some retail outlets to start rationing the products — limiting the quantities that customers can buy.

“I can tell you that two companies are sharing the $8 million and they got the cash last week. One of the two companies is Surface Investments [in Chitungwiza] which produces Pure Drop [cooking oil],” said a highly-placed source at the central bank who requested anonymity. He could not confirm the second beneficiary at the time of going to print.

According to the source, the facility was made available to address what he called an artificial shortage created by panic buying triggered by the prevailing cash crisis.

“This shortage is artificial because people are just stocking basics because the media and other people tell them so. We have made available this money to meet the artificial high demand and I can assure you things will be normal once people realise they are being misled,” the source said.

Zimbabwe has four oil producing firms; ETG Parrogate, Surface Investments, Olivine and United Refineries. 

8 Responses to Govt injects $8m into cooking oil production

  1. doRoKudya June 5, 2016 at 2:15 pm #

    Ummm! and who owns these companies? And is there a shortage really?
    Thats how these guys siphon money from the Treasury. Spending $8 million on cooking oil my foot.Legitimate theft!!!

  2. Zvichapera June 5, 2016 at 2:28 pm #

    This is hot air, The ZANU PF mafia government is broke. What this article should say is that the government has again taken depositors’ funds, that is robbing one to pay another and this will not work. Life is not cooking oil alone. This is the highest form of insanity. Next week you will be talking about salt. Know that nearly everything is being imported or is manufactured from imported raw materials. So it should be comprehensive funding and not cooking oil funding from funds illegally taken from depositors. Time will tell. Fools are best known for being self destructive.

  3. Chikerema Chikerema June 5, 2016 at 5:31 pm #

    If there is a market for cooking oil how do these companies fail to pay for raw materials. Are they selling the product at cost-minus? Do consumers buy cooking oil on a 60-90day credit?

    • Fooled June 12, 2016 at 12:19 pm #

      Even with this money they still can not buy soya. They want to pay on 7 day transfer. How does farmer get the cash to run his business even though buyer has the cash.. Farmers have to pay cash for everything but do not get paid cash for anything.

  4. Muchie June 5, 2016 at 6:21 pm #

    This does not make sense. These companies have been making huge profits over the years. Why give them such an amount of money.

  5. Tok June 6, 2016 at 9:32 am #

    Im smelling a rat here!

  6. edika June 8, 2016 at 12:23 pm #

    I don’t know who to blame here, the reporter or the government ministry or department responsible, for missing details on the matter such as whether the 8 million dollars is a loan, subsidy or grant, why the companies need it, how they will repay if it is a loan, where the money suddenly came from .. the list is long.

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