LISTED sugar producer, Starafrica Corporation Limited (SACL) has installed an 11kV dedicated power supply line and procured a 1,000kVA generator to augment power supply at its refinery.

In a trading update for the quarter ended 30 June 2022, the firm indicated that in the period under review, production volume of granulated white sugar at Goldstar Sugars was 14 percent lower than those attained during the prior year comparative period.

The drop in production is attributed to erratic power supply, hence the installation of a dedicated power line.

“For the first quarter of the 2022/23 financial year, production volumes of granulated white sugar at Goldstar Sugars were 14 percent lower than those attained during the prior year comparative period,” said the company.

“Power and steam supply constraints were the main causes of the reduced throughput at the refinery, as they negatively impacted plant uptime. Consequently, the reduced production led to a three percent decrease in sales volumes when compared with the prior year.

“The business has since installed an 11kV dedicated power supply line, procured a 1,000kVA generator and electrical cables to augment power supply. An overhaul programme on two of the five boilers is nearing completion. These initiatives are expected to result in a significant improvement in production,” said the firm.

In line with Vision 2030, the Government has mandated independent power producers to contribute close to 40 percent of the targeted 11 500MW that the country needs in order to attain an upper-middle-income economy status where electricity, among other services, should be readily available and accessible to all citizens.

Since 2010, the regulatory authority has licensed over 70 IPPs to establish electricity generation plants across the country, with estimated output of over 6 000MW combined.

However, a few small projects are operational and only producing little at a time the country is experiencing a serious electricity deficit.

Several high energy using firms especially in the mining sector are installing solar plants to ensure steady supply of energy and boost production  levels.

Production and sales volumes for Country Choice Foods, a unit of Starafrica, are said to have improved significantly due to the commissioning of an automatic syrup filling machine, a more robust competitive pricing strategy and the introduction of new product lines namely baking powder, raisins and cocoa powder.

This resulted in notable increases in sales and production volumes by 81 percent and 68 percent, respectively, from the prior year comparative period, the company added.

Acknowledging the currency volatility, which resulted in increased operational costs for the business and reduced consumer spending in the market, SACL said the business sector applauds efforts by the authorities to tame inflation and stabilise the local currency.

Government recently introduced a raft of tight monetary policy measures and its focus on fiscal sustainability, if maintained, should lead to lower inflation levels, SACL said.

Reserve Bank of Zimbabwe (RBZ)

The Reserve Bank of Zimbabwe (RBZ) has raised the bank lending rate to 200 percent per annum to curb speculative borrowing, among a raft of measures to contain inflation and foreign exchange parallel market activities.

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