Sanctions cripple Khayah Cement

Mukudzei Chingwere, Herald Reporter

Due to the devastating effects of the unlawful economic sanctions that have negatively affected its operations, Khaya Cement Limited has entered corporate rescue proceedings.

Mr Bulisa Mbano of Grant Thornton (Zimbabwe) Chartered Accountants has been appointed as the corporate rescue practitioner after the company adopted a resolution on December 20 to begin a corporate rescue procedure under the Insolvency Act.

The resolution was filed with the Master of the High Court and the Registrar of Companies to start a critical step in the company’s efforts to navigate its financial difficulties.

Khayah Cement, one of the local companies under illegal sanctions, has had to go through their operations under the weight of the illegal economic embargoes.

The company said, “creditors and other stakeholders would be notified of further processes by the corporate rescue practitioner.”

Mr Mbano’s role will be crucial in guiding the company through this challenging period and ensuring that creditors and stakeholders are kept informed of all developments.

The Western-imposed economic sanctions have created an untenable business environment for Khaya Cement, which is vital for the local construction industry.

The inability to access necessary resources has not only affected the company’s production capabilities but had also had a ripple effect on employment and related sectors.