One
of Zimbabwe’s leading commodity manufacturers Olivine industries has announced
a continued shut down with an indefinite leave for its employees, citing the
lack of imported raw materials.

In a
statement issued out yesterday, the company said they struggled for the
remainder of 2018 and outstanding credits have led to them stopping operations.

“Unfortunately
production during the remainder of 2018 struggled at low capacity due to
shortages of raw materials procured through credit lines which were last
serviced in July 2018.

“The
company currently owes US$11 million to its suppliers who have since cut off
supplies until the arrears are paid,” read the letter.

They
added that as they await foreign currency allocations, their efforts to engage
government have not had any resolution and they had to close until further
notice.

Olivine
Industries is the producer of Buttercup margarine, Jade, Perfection and Olivine
cooking oil among other brands and Ministry of finance are part owners in the
company.

Closure
of Olivine comes shortly after the Confederation of Zimbabwe Industries said
many companies will run out of foreign currency to buy raw materials in the
next 10 days meaning workers will be told to go home.

The
shortage of foreign currency took a toll on Zimbabwe’s industry last year which
saw top companies like National foods shutting down.

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Tapiwa Kapisa

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