LIVINGSTONE MARUFU
Agro-processing firm, United Refineries Limited (URL), has lost around US$450,000 in potential revenue in three days after it temporarily suspended operations at its Bulawayo factory this week due to water shortages.
Zimbabwe’s second largest city, Bulawayo, is experiencing a water crisis due to the failure by city authorities to expand its pumping capacity in tandem with the city’s growing population.
Busisa Moyo, the URL chief executive officer told Business Times yesterday that the company requires between 60 000 litres and 150 000 litres of water per day.
The failure to access water has prompted the company to shut its doors temporarily, incurring some losses.
“Our engineers are working together with the BCC (Bulawayo City Council) Water Department to ensure water supply to the Kelvin Industry area is restored promptly.
So far from Monday up to Wednesday, the company has lost revenue between US$100,000 and US$150,000 per day,” Moyo said.
URL, however, is set to reopen on Monday as the BCC and the company’s engineers have up to Monday to resolve the problem. URL, which has been in existence for more than eight decades, is one of the largest Bulawayo based manufacturing companies.
It enjoys more than 20% market share and survived de-industrialisation which hit Bulawayo city in the 2000s.
Moyo said the company was looking at alternatives. URL is also pursuing other medium term strategies together its partners to augment water supply for factory operations.
Its requirement, however, is too large to be supplied by boreholes especially at peak season which is between November and December.
URL is the manufacturer of Roil cooking and image soap and recently introduced mealie-meal production.
It has most of its food products fortified with critical vitamins for consumer health benefits.
The company is interested in listing shares on the newly established Victoria Falls Stock Exchange. It has a workforce of about 400 people.
