GMB set for restructuring
http://www.theindependent.co.zw/
Thursday, 03 May 2012 14:51
Gamma Mudarikiri
THE Grain Marketing Board (GMB) is this year set to restructure
operations which will see the separation of the Strategic Grain
Reserve (SGR) function from commercial activities and staff
retrenchment to a maximum of 1 300 workers.
GMB chairman Charles Chikaura said the separation would see the
establishment of a Special Purpose Vehicle in the form of a Private
Limited company .
The organisation’s three divisions, which include Polybags
Manufacturing, Agro Processing and Farmer Support Services and
Commodity Trading and Logistics, will operate under the new proposed
privatised company.
The parastatal said as part of the strategic alignment process it
will reduce staffing to 1 300 permanent employees from the current 2
242. This, Chikaura said, will be done through restructuring and
retrenchment between 2012 and 2013.
Chikaura said the exercise would see staff cost to income ratio
maintained at below 30% down by half from the previous average of
60%.
“The tender for the organisation’s restructuring has since been floated.
This restructuring will result in the separation of SGR from
commercial services,” Chikaura said in a statement.
GMB is projecting to reduce its loss by 76% to US$ 1,5 million by
end of this year. Profits of up to US$ 2, 8 million are expected by end
of 2013.
Chikaura said the reduction in losses is attributed to improvement
in sales revenue, annual grain intake and cost containment measures
the organisation continues to implement.
Sales revenue in 2011 grew by 26% to US$ 14,7 million, up from
US$11,6 million recorded in the previous year. The organisation is
projecting a 33% increase in sales revenue to US$19, 5 million by end of
2012.
SGR support handling and storage fees contribution to revenue
increased by 563% to US$29,2 million up from US$ 4,4 million recorded in the
previous year. Contribution this year is projected to increase by 11% to
US$ 34, 1 million.
According to GMB , annual grain intake continues to improve and
this year is anticipated to increase by 20% from the 300 000mt
recorded in 2011.
The organisation said it will continue with its value addition to
improve its financial position and strategic position.
Chikaura said joint a venture proposal with a private player is still
under consideration by government and adoption is anticipated to
improve on efficiency and profitability of the organisation.