City secures US$600 000 loan | The Herald

via City secures US$600 000 loan | The Herald December 28, 2013

Harare City Council’s business committee has approved a request to borrow US$600 000 as seed capital to commence commercialisation of its farms under the Sunshine Meats Project. Chamber secretary Mrs Josephine Ncube told councillors that the city applied for US$3 million from a local financial institution, but was offered US$600 000.

“The chamber secretary reported that the project was centred on cattle herds at Pension, Ingwe and Crowborough farms which had a current herd of approximately 5 000,” read minutes of a recent business committee meeting.

“Pension Farm had been selected as suitable for installation of fattening project infrastructure, while Crowborough and Ingwe farms were for breeding farms.”

Council intends to focus on fattening 700 cattle from the existing herd, and the breeding herd would be built up steadily within three years until it reaches the full potential of 11 000.

Mrs Ncube said the business would need to buy additional cattle to support the fattening scheme. The major cost driver will be stockfeeds, which council intended to produce on its own by growing maize, soyabeans and lucerne grass.

“When the stockfeed production is firmly established, the business will venture into other meat projects such as piggery, poultry and rabbit keeping,” read the minutes

“The vision ends by establishing a meat processing plant. The funding would transform the infrastructure into a full commercial entity covering the pumping of effluent from the sewerage works, rehabilitation of irrigation canals and dipping facilities, the procurement of farm equipment such as tractors, trucks, motorbikes and hay balers.”

The business committee appreciated the idea of rehabilitating the city’s farms and while accepting the loan, the members expressed the need for council to look for partners with a view to starting a profit-share business.

They were also concerned by the mismanagement of farms and urged council to tighten its systems to this end.
Council has five farms – Crowborough (1 204 hectares), Pension (800 hectares), Churu (264 hectares), Ingwe (1 400 hectares) and Porta (100 hectares).

Crowborough, Pension and Ingwe farms have some cattle, while Churu and Porta are lying idle.

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6 comments on “City secures US$600 000 loan | The Herald
  1. Sekuru Mapenga says:

    Is the city of Harare a suitable entity to run a commercially successful farming operation? This is doubtful. They have no skills in agriculture. They should rent out these farm properties to skilled farmers, or as the councillors suggest, they should look for profit share partners.

  2. This bogus venture is the prelude to massive looting plans by zanupf councilors and terrorist chombo

  3. Mr Mixed Race says:

    Good logical comment by Sekuru.They can not supply simple services like water and health adequately,they now want to venture to a more complicated field with zero skills.What is happening in Harare?

  4. Parangeta says:

    It is illegal for a City Council to approve or disapprove a Commercial loan – UNLESS!

    Unless the City Council in not the City Council, but in fact a quasi ZANU-PF Fagan here) Money Lender in Disguise.

    Any fool can see that a loan to an Entity that claims to breed, feed, fatten and increase a Cattle herd, is ludicrous!

    Harare City Council cannot pay Utility bills because ZANU-PF gave the customers a reprieve. The City is broke and yet it can fund a Loan to Cattle Farmers.

    Come on people, this is a typical ZImScam and 33 years old too, Mugarbage at his best, blackmail the Cities that voyed against ZANU-PF. That’s hopw Dis-Grace got her Dairy Farm that Nestles boycotted, remember.

    I often wonder if ex – Mrs Stanley Goreraza, ever navigates through the cattle dung in her ‘Manolo Blahnik’s’?

  5. Mr Mixed Race says:

    We get your logical explanation well.Thanks.

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