The National Social Security Authority (NSSA) is set to take a 35 percent shareholding in Silo Food Industries as part of a recapitalisation plan aimed at restoring the food processor’s operational capacity and commercial viability.
NSSA general manager Dr Charles Shava said the investment would provide Silo with capital to modernise its milling operations, expand production and generate long-term returns for pension fund members.
“Taking a 35 percent equity stake in Silo Food Industries will provide the capital required for recapitalisation and operational expansion, ensuring the enterprise reaches commercial viability while generating long-term returns for our pensioners,” Dr Shava said.
The proposed transaction comes as Silo works to strengthen its balance sheet and reduce production costs. Improved efficiency is expected to help the company supply affordable food products and stock feeds to the market.
Silo was created in July 2018 after the Grain Marketing Board was unbundled. It assumed responsibility for the GMB’s commercial processing and retail activities, including the manufacture and distribution of food products and animal feeds.
Its product range includes mealie meal, flour, rice, traditional grains, coffee and livestock feed sold under the Country Feeds brand.
The company is wholly owned by the Mutapa Investment Fund, Zimbabwe’s sovereign wealth fund.
NSSA’s planned investment forms part of a wider effort to reposition State-owned enterprises as sustainable and profitable businesses. The capital injection is expected to support Mutapa’s mandate to improve the performance of its portfolio companies while preserving value for the public and pension beneficiaries.
For Silo, the proposed partnership could provide an opportunity to upgrade ageing equipment, improve production efficiency and strengthen its position in Zimbabwe’s food-processing sector.
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