CFI is banking on its strategic brands which have potential for further growth and market consolidation
Enacy Mapakame Business Reporter
Agri-industrial group CFI Holdings Limited, will soon initiate a capital raise as it seeks to fully turnaround the company whose value had whittled down on alleged irregularities and corporate governance deficiencies, major shareholder Stalap Investments has said.
In a statement, Stalap Investments an investment holding company owned by Zimre Holdings and its affiliates, said management is upbeat of a full turnaround of CFI. The company said it will soon call for a rights issue to raise funds that will be used to turnaround the company.
“The medium term plan for the group is to raise capital through a rights issue. Capital raised will be placed into production, to further capacitate the great brands and grow market share. Resuscitation of CFI subsidiaries will create and promote employment in the country. CFI is destined to have a robust future,” said Stalap.
The group is also banking on its strategic brands such as Farm and City, Agrifoods, Victoria Foods, Crest Breeders and Suncrest Chickens amongst others, which have potential for further growth and market consolidation.
“The roadmap for this has already started to take shape with the company getting back onto its feet, driven by the vision that Stalap has for the business. Farm and City and Glenara Estates are at full capacity and are profitable. Agrifoods has accessed additional working capital and will increase production,” said Stalap.
According to Stalap, Victoria Foods has already entered into a six month toll milling arrangement to take the mill out of care and maintenance. Zimbabwe’s agriculture sector is on a growth trajectory spearheaded by the Command Agriculture programme, which has already boosted production in the 2016/ 17 season.
This is also expected to cascade to other downstream industries such as manufacturing sector, which relies on agriculture for the bulk of its raw materials. In line with this, CFI also seeks to capitalise on the agriculture sector for its growth.
“CFI will remain a key player in the realisation of the nation’s agriculture production aspirations. It will take advantage of the current Government thrust to promote local production and stimulate agriculture production through the Command Agriculture Programme,” said Stalap.